Real Estate Math

A Hawaii property's assessed value is 85% of its market value. If the market value is $720,000 and the tax rate is $3.20 per $1,000 of assessed value, what are the annual property taxes?

AA. $2,304.00
BB. $1,958.40✓ Correct
CC. $2,460.00
DD. $1,843.20

Explanation

Assessed value = $720,000 × 85% = $612,000. Annual taxes = $612,000 / $1,000 × $3.

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