Real Estate Math
A property is assessed at 10% of its full cash value of $500,000. If the tax rate is $12 per $100 of assessed value, what is the annual tax?
A$3,600
B$6,000✓ Correct
C$12,000
D$60,000
Explanation
Assessed value = $500,000 × 10% = $50,000. Tax = ($50,000 ÷ $100) × $12 = 500 × $12 = $6,000. To solve this, multiply the relevant values: $500,000 and $12 at 10%.. The correct answer is $6,000.. This is a common calculation on the Arizona real estate exam.
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