Real Estate Math

A Hawaii buyer pays $520,000 for a home. The county assesses it at 90% of purchase price. The tax rate is $8.50 per $1,000. What is the annual property tax?

AA. $3,978✓ Correct
BB. $4,420
CC. $4,420
DD. $3,978

Explanation

Assessed value = $520,000 × 0.90 = $468,000.

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