Real Estate Math

A property is assessed at 60% of its market value of $500,000. The tax rate is $1.20 per $100 of assessed value. What are the annual property taxes?

A$3,600✓ Correct
B$6,000
C$3,000
D$7,200

Explanation

Assessed value = $500,000 × 60% = $300,000. Tax = ($300,000 ÷ $100) × $1.20 = 3,000 × $1.20 = $3,600 per year.

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