Real Estate Math
A Hawaii property has a market value of $875,000 and an assessed value equal to 100% of market value. The tax rate is 3.5 mills. What is the annual tax?
AA. $3,062.50✓ Correct
BB. $30,625
CC. $3,500
DD. $875
Explanation
Mill rate 3.5 = $3.50 per $1,000. $875,000 / $1,000 × $3.50 = $3,062.50. To solve this, multiply the relevant values: $875,000 at 100%.. The correct answer is A. $3,062.50.. This is a common calculation on the Hawaii real estate exam.
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