Real Estate Math

A Colorado home is assessed at 7.15% of its actual value. The actual value is $400,000 and the mill levy is 85 mills. What is the annual property tax?

A$2,040
B$2,431✓ Correct
C$3,400
D$4,200

Explanation

Assessed value = $400,000 × 7.15% = $28,600.

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