Real Estate Math

A property is assessed at 80% of its $500,000 market value. The tax rate is $12 per $1,000 of assessed value. What is the annual property tax?

A$3,840
B$4,800✓ Correct
C$6,000
D$7,500

Explanation

Assessed value = $500,000 × 80% = $400,000. Annual tax = ($400,000 ÷ $1,000) × $12 = 400 × $12 = $4,800.

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