Real Estate Math
An Alabama property has a market value of $350,000. It is assessed at 10% for tax purposes. The mill rate is 40 mills. What are the annual property taxes?
A$1,400✓ Correct
B$14,000
C$3,500
D$4,000
Explanation
Assessed value = $350,000 × 0.10 = $35,000. Tax = $35,000 × (40 ÷ 1,000) = $35,000 × 0.04 = $1,400. To solve this, multiply the relevant values: $350,000 at 10%.. The correct answer is $1,400.. This is a common calculation on the Alabama real estate exam.
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