Real Estate Math
A Rhode Island property has gross rents of $2,400/month. If the GRM is 110, what is the indicated value?
A$264,000✓ Correct
B$290,000
C$316,800
D$240,000
Explanation
Annual gross rents: $2,400 x 12 = $28,800. Value = GRM x Annual Gross Rents = 110 x $28,800 = $3,168,000.
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