Real Estate Math
A property is assessed at 60% of its market value. The market value is $400,000. The tax rate is $12 per $1,000 of assessed value. What is the annual property tax?
A$2,880✓ Correct
B$4,800
C$2,400
D$3,600
Explanation
Assessed value = $400,000 × 60% = $240,000. Tax = $240,000 ÷ $1,000 × $12 = $2,880. To solve this, multiply the relevant values: $400,000 and $12 at 60%.. The correct answer is $2,880.. This is a common calculation on the Alabama real estate exam.
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