Real Estate Math

A property is assessed at 80% of its market value of $400,000. The tax rate is $12 per $1,000 of assessed value. What is the annual property tax?

A$3,840✓ Correct
B$4,800
C$3,200
D$6,000

Explanation

Assessed value = $400,000 × 0.80 = $320,000. Annual tax = ($320,000 ÷ $1,000) × $12 = 320 × $12 = $3,840.

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