Real Estate Math

A property's assessed value is $240,000. The tax rate is 1.25%. What is the annual property tax?

A$2,400
B$3,000✓ Correct
C$3,600
D$4,200

Explanation

Annual tax = $240,000 × 1.25% = $240,000 × 0.0125 = $3,000. To solve this, multiply the relevant values: $240,000 at 1.25%.. The correct answer is $3,000.. This is a common calculation on the Delaware real estate exam.

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