Real Estate Math
An apartment in Fargo rents for $900 per month. The annual gross rent multiplier (GRM) for the area is 125. What is the estimated value?
A$112,500✓ Correct
B$95,625
C$135,000
D$270,000
Explanation
Annual rent = $900 × 12 = $10,800. Value = Annual rent × GRM = $10,800 × 125 = $1,350,000.
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