Real Estate Math
A property in Cook County has an assessed value of $90,000 and the state equalization factor is 2.9167. If the tax rate is 8%, what are the annual property taxes?
A$7,200
B$20,880
C$21,000✓ Correct
D$209,304
Explanation
Step 1: Calculate EAV = $90,000 × 2.9167 = $262,503. Step 2: Annual taxes = EAV × tax rate = $262,503 × 0.08 = $21,000.24, which rounds to $21,000. In Cook County, the equalization factor is typically higher than other Illinois counties because assessed values are set at a lower percentage of market value.
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