Real Estate Math
A property has a market value of $450,000 and is assessed at 40% of value. If the mill rate is 30 mills, what are the annual property taxes?
A$3,600
B$4,200
C$5,400✓ Correct
D$13,500
Explanation
Assessed value = $450,000 × 40% = $180,000. Taxes = $180,000 × 0.030 = $5,400. To solve this, multiply the relevant values: $450,000 at 40%.. The correct answer is $5,400.. This is a common calculation on the Georgia real estate exam.
Related Georgia Real Estate Math Questions
- A property was purchased for $325,000. It appreciated at 4% per year for 3 years. What is the current value?
- A home sold for $425,000. The seller's adjusted basis is $315,000. Under IRS rules for a primary residence, the capital gain is:
- A seller pays a 6% commission on a sale of $425,000. The listing broker and selling broker split the commission 60/40 respectively. How much does the selling broker receive?
- An office building has 50,000 rentable square feet with current occupancy of 88%. At $22 per square foot annually, what is the effective gross annual rent?
- A commercial building has 25,000 sq ft of net rentable area. Base rent is $28/sq ft/year with annual NNN expenses of $8/sq ft. What is the tenant's total annual cost?
- A property is listed at $499,000. A buyer offers $480,000. The seller counters at $492,000. They finally agree at $488,000. What is the commission at 5.5%?
- A 6-unit apartment building generates $8,400 per month in gross rents. Annual operating expenses (excluding mortgage) are $36,000. If the building is purchased for $850,000, what is the cap rate?
- A property has a potential gross income of $75,000, vacancy of 8%, and operating expenses of $28,000. Using a cap rate of 8%, estimate the property value.
Practice More Georgia Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Georgia Quiz →