Answer :
Final answer:
The gross rent multiplier (GRM) is calculated by dividing the property's sale price by the gross annual rental income. In this case, using the data given, the GRM should be approximately 8.2,
The correct answer is C
Explanation:
The gross rent multiplier (GRM) is a real estate metric that measures the ratio between a property's price and its gross rental income.
It is calculated by dividing the property's sale price by the its gross annual rental income. You can use this formula to calculate the GRM: GRM = Property's sale price / Gross annual rental income.
In this case, the property's sales price is given as $95,750 and the monthly rental income is $975. Hence, the annual rental income will be 975 * 12 = $11,700, as there are 12 months in a year. Plugging in these values into the equation gives: GRM = $95,750 / $11,700 which gives approximately 8.2.
However, none of the given options match this answer, hence it's possible that there may be a mistake in the given question or its options.
So, the correct answer is: c. 98.2
Learn more about Gross Rent Multiplier here:
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