Real Estate Math
A Montana property's gross rent multiplier (GRM) is 10. Monthly gross rent is $1,800. What is the estimated property value?
A$18,000
B$180,000
C$216,000✓ Correct
D$21,600
Explanation
Using GRM on a monthly basis: Value = GRM x Monthly Gross Rent = 10 x $1,800 = $18,000. But if GRM is annual: Annual rent = $1,800 x 12 = $21,600.
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