Real Estate Math
Property taxes on an Arizona home valued at $325,000 are assessed at 10% of full cash value with a tax rate of $12 per $100 of assessed value. What is the annual tax bill?
A$3,250
B$3,900✓ Correct
C$4,680
D$39,000
Explanation
Assessed value = $325,000 × 10% = $32,500. Tax = ($32,500 / $100) × $12 = 325 × $12 = $3,900. To solve this, multiply the relevant values: $325,000 and $12 at 10%.. The correct answer is $3,900.. This is a common calculation on the Arizona real estate exam.
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