Real Estate Math
A property has an assessed value of $240,000. The assessment ratio is 20% of market value, and the tax rate is $35 per $1,000 of assessed value. What is the annual property tax?
A$1,680✓ Correct
B$8,400
C$4,200
D$2,100
Explanation
Assessed value for tax purposes = $240,000 × 20% = $48,000. Annual tax = ($48,000 ÷ $1,000) × $35 = 48 × $35 = $1,680.
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