Property Valuation
A Michigan property has an annual gross rent of $24,000. Using a gross rent multiplier (GRM) of 120, the estimated value is:
A$200
B$2,400,000
C$2,880,000✓ Correct
D$288,000
Explanation
Value = GRM x Annual Gross Rent. 120 x $24,000 = $2,880,000. Using the values given ($24,000), apply the appropriate formula.. The correct answer is $2,880,000.. This is a common calculation on the Michigan real estate exam.
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