Real Estate Math

A property is assessed at 10% of its $480,000 market value. The tax rate is $9.50 per $100 of assessed value. What is the annual tax?

A$4,560✓ Correct

B$4,800

C$45,600

D$456

Explanation

Assessed value = $480,000 × 10% = $48,000. Tax = ($48,000 / $100) × $9.50 = 480 × $9.50 = $4,560. To solve this, multiply the relevant values: $480,000 and $9.50 at 10%.. The correct answer is $4,560.. This is a common calculation on the Arizona real estate exam.

Related Arizona Real Estate Math Questions

An Arizona rental property generates $2,400 per month in rent. The gross rent multiplier (GRM) for comparable properties is 135. What is the estimated value?
An Arizona property has a tax rate of 10.5 mills (0.0105). The property is assessed at 10% of its $480,000 full cash value. What are the annual taxes?
A buyer's monthly gross income is $7,500. Using a 28% front-end (housing) ratio, what is the maximum PITI payment they can afford?
An Arizona property was purchased for $280,000 and sold for $350,000. Capital gains (simplified) are $70,000. If the federal capital gains tax rate is 15%, how much tax is owed?
A buyer obtains an $180,000 loan at 6% interest for 30 years. If the monthly payment factor is $5.996 per $1,000, what is the total amount paid over the life of the loan?
A buyer can afford a maximum monthly payment of $2,400. If taxes are $200/month and insurance is $125/month, what is the maximum PITI payment, and how much is available for principal and interest (P&I)?
An Arizona investor paid $400,000 for a property and wants a 9% return on investment. What annual net income is required?
An Arizona buyer qualifies for a maximum loan with a payment factor of $7.69 per $1,000 at 8% for 30 years. If their maximum P&I payment is $1,846, what is their maximum loan?

Practice More Arizona Real Estate Questions

1,500+ questions covering all exam topics. Start free — no signup required.

Take the Free Arizona Quiz →