Real Estate Math
A property is assessed at 20% of its market value of $400,000. The tax rate is 50 mills. What is the annual property tax?
A$2,000
B$4,000✓ Correct
C$8,000
D$20,000
Explanation
Assessed value = $400,000 × 20% = $80,000. Tax = $80,000 × 50 mills = $80,000 × 0.
Related Arkansas Real Estate Math Questions
- An investor purchases a rental property for $500,000. The annual NOI is $45,000. What is the cap rate?
- If a property appreciated 8% in one year, and it is now worth $270,000, what was the original value?
- A rental property has a GRM of 110 and a monthly rent of $1,500. What is the estimated value?
- A broker splits the commission with the selling broker 50/50. The total commission is $15,000. The selling salesperson receives 60% of their broker's half. How much does the selling salesperson earn?
- A listing agreement states the seller wants to net $185,000 after paying a 6% commission. What must the property sell for (rounded to nearest dollar)?
- Annual property taxes are $3,600. The seller owned the property from January 1 through September 30 (closing is October 1, using a 360-day year / 30-day months). How much does the seller owe the buyer in tax proration?
- A $150,000 loan at 6% annual interest. What is the first month's interest?
- A commercial property has an NOI of $45,000 and a cap rate of 9%. What is its estimated value?
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →