Real Estate Math
A St. Louis area property has a GRM of 125 and rents for $1,400/month. What is the estimated value?
A$145,000
B$175,000✓ Correct
C$148,750
D$200,000
Explanation
Value = GRM × Monthly rent = 125 × $1,400 = $175,000. Using the values given ($1,400), apply the appropriate formula.. The correct answer is $175,000.. This is a common calculation on the Missouri real estate exam.
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