Real Estate Math
A buyer in Illinois purchases a home for $320,000. The transfer tax is $1.50 per $500 of purchase price (or fraction thereof). What is the total transfer tax?
A$640
B$720
C$960✓ Correct
D$1,200
Explanation
Number of $500 increments = $320,000 ÷ $500 = 640. Transfer tax = 640 × $1.50 = $960. Using the values given ($320,000, $1.50), apply the appropriate formula.. The correct answer is $960.. This is a common calculation on the Illinois real estate exam.
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