Real Estate Math
A Maine rental property has an asking price of $500,000 and generates $48,000 in annual gross rent. The annual GRM is:
A8.33
B10.42✓ Correct
C104.2
D4.17
Explanation
Annual GRM = Sale price ÷ Annual gross rent = $500,000 ÷ $48,000 = 10.42. Using the values given ($500,000, $48,000), apply the appropriate formula.. The correct answer is 10.42.. This is a common calculation on the Maine real estate exam.
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