Real Estate Math
A property in Alabama sells for $425,000. The transfer tax rate is $0.50 per $500. What is the transfer tax?
A$425✓ Correct
B$850
C$212.50
D$4,250
Explanation
Transfer tax = ($425,000 ÷ $500) × $0.50 = 850 × $0.50 = $425. Using the values given ($425,000, $0.50), apply the appropriate formula.. The correct answer is $425.. This is a common calculation on the Alabama real estate exam.
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