Real Estate Math
A home is assessed at 40% of its market value. The market value is $375,000 and the mill rate is 25 mills. What is the annual property tax?
AA. $3,750✓ Correct
BB. $9,375
CC. $2,500
DD. $15,000
Explanation
Assessed value = 40% × $375,000 = $150,000. Tax = $150,000 × 25 mills = $150,000 × 0.025 = $3,750. To solve this, multiply the relevant values: $375,000 at 40%.. The correct answer is A. $3,750.. This is a common calculation on the Georgia real estate exam.
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