Real Estate Math
A property generates monthly rent of $5,000. If the GRM is 10, what is the estimated value of the property using annual gross rent?
A$500,000
B$600,000✓ Correct
C$50,000
D$750,000
Explanation
Annual gross rent = $5,000 × 12 = $60,000. Value = GRM × Annual Gross Rent = 10 × $60,000 = $600,000.
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