Real Estate Math

A property's assessed value is $180,000 and the tax rate is $1.25 per $100 of assessed value. What is the annual property tax?

A$1,800
B$2,250✓ Correct
C$22,500
D$225

Explanation

Annual tax = (Assessed Value ÷ 100) × Tax Rate = ($180,000 ÷ 100) × $1.25 = $1,800 × $1.25 = $2,250.

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