Real Estate Math
A property's assessed value is $120,000. The tax rate is $15 per $1,000 of assessed value. What is the annual property tax?
A$1,500
B$1,800✓ Correct
C$1,200
D$2,000
Explanation
$120,000 ÷ $1,000 = 120 units × $15 = $1,800 annual property tax. Using the values given ($120,000, $15), apply the appropriate formula.. The correct answer is $1,800.. This is a common calculation on the Alabama real estate exam.
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