Real Estate Math
A Colorado property has a market value of $520,000. The residential assessment ratio is 7.15% and the mill levy is 80 mills. What is the annual property tax?
A$2,326
B$2,974✓ Correct
C$3,126
D$4,160
Explanation
Assessed value = $520,000 × 7.15% = $37,180. Annual tax = $37,180 × 0.080 = $2,974.40. To solve this, multiply the relevant values: $520,000 at 7.15%.. The correct answer is $2,974.. This is a common calculation on the Colorado real estate exam.
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