Real Estate Math
A property has a market value of $450,000. It is assessed at 20% of market value, and the tax rate is 45 mills. What are the annual property taxes?
A$4,050✓ Correct
B$4,500
C$9,000
D$3,600
Explanation
Assessed value = $450,000 × 20% = $90,000. Annual taxes = $90,000 × 0.045 = $4,050. To solve this, multiply the relevant values: $450,000 at 20%.. The correct answer is $4,050.. This is a common calculation on the Arkansas real estate exam.
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