Real Estate Math
Transfer taxes in Alabama are $0.50 per $500 of the sale price. What is the transfer tax on a $275,000 sale?
A$137.50
B$275✓ Correct
C$550
D$275,000
Explanation
$275,000 ÷ $500 = 550 units × $0.50 = $275 transfer tax. Using the values given ($0.50, $500), apply the appropriate formula.. The correct answer is $275.. This is a common calculation on the Alabama real estate exam.
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