Real Estate Math

A Delaware property is assessed at $175,000. If the tax rate is 1.4%, what is the monthly tax escrow amount (1/12 of annual taxes)?

A$175.00
B$204.17✓ Correct
C$240.00
D$157.50

Explanation

Annual tax = $175,000 × 0.014 = $2,450. Monthly escrow = $2,450 ÷ 12 = $204.17. To solve this, multiply the relevant values: $175,000 at 1.4%.. The correct answer is $204.17.. This is a common calculation on the Delaware real estate exam.

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