Real Estate Math
An Alaska property is assessed at 60% of its $500,000 market value. The tax rate is $15 per $1,000 of assessed value. What is the annual property tax?
A$3,500
B$4,500✓ Correct
C$7,500
D$9,000
Explanation
Assessed value = $500,000 × 60% = $300,000. Tax = ($300,000 ÷ $1,000) × $15 = 300 × $15 = $4,500 per year.
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