Real Estate Math
An Anchorage property assessed at $340,000 qualifies for a $50,000 senior citizen exemption. The mill rate is 16.5 mills. What is the annual property tax?
A$4,785✓ Correct
B$5,247
C$5,610
D$6,270
Explanation
Taxable value = $340,000 − $50,000 = $290,000. Tax = $290,000 × 16.
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Key Terms to Know
Capitalization Rate (Cap Rate)
A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
AmortizationThe gradual repayment of a loan through scheduled periodic payments that cover both principal and interest.
Adjustable-Rate Mortgage (ARM)A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
Math Concepts
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