Real Estate Math

A property is assessed at 10% of its $420,000 market value. The tax rate is $8.50 per $100 of assessed value. What is the annual property tax?

A$3,570✓ Correct
B$35,700
C$357
D$4,200

Explanation

Assessed value = $420,000 × 10% = $42,000. Tax = $42,000 ÷ $100 × $8.

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