Real Estate Math (alternative)
A Maryland rental property has monthly rent of $1,800 and a GRM of 120. The indicated value is:
A$153,000
B$216,000✓ Correct
C$201,600
D$240,000
Explanation
GRM uses monthly rent: Value = Monthly rent × GRM = $1,800 × 120 = $216,000. Using the values given ($1,800), apply the appropriate formula.. The correct answer is $216,000.. This is a common calculation on the Maryland real estate exam.
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