Real Estate Math

A Chicago property has a purchase price of $650,000. The state transfer tax is $0.50 per $500 and the city transfer tax is $3.75 per $500. What is the total transfer tax?

A$650
B$4,875
C$5,525✓ Correct
D$6,175

Explanation

Number of $500 increments = $650,000 ÷ $500 = 1,300. State transfer tax = 1,300 × $0.

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