Real Estate Math
A Maryland property's annual gross rent is $36,000 and it sells for $450,000. The gross rent multiplier (annual GRM) is:
A8
B10
C12.5✓ Correct
D15
Explanation
Annual GRM = Sale Price ÷ Annual Gross Rent = $450,000 ÷ $36,000 = 12.5. Using the values given ($36,000, $450,000), apply the appropriate formula.. The correct answer is 12.5.. This is a common calculation on the Maryland real estate exam.
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