Real Estate Math

A Florida property is assessed at 85% of its $400,000 market value. The millage rate is 18 mills. What is the annual property tax?

A$5,400
B$6,120✓ Correct
C$7,200
D$3,060

Explanation

Assessed value = $400,000 × 0.85 = $340,000. Tax = $340,000 × (18 ÷ 1,000) = $340,000 × 0.018 = $6,120.

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