Real Estate Math
A property's assessed value is $180,000 and the assessment ratio is 33.33%. The equalized assessed value (EAV) is $60,000. If the tax rate is $8 per $100 of EAV, what are the annual property taxes?
A$480
B$4,800✓ Correct
C$14,400
D$1,440
Explanation
Property taxes = (EAV ÷ 100) × Tax rate = ($60,000 ÷ 100) × $8 = 600 × $8 = $4,800. To solve this, multiply the relevant values: $180,000 and $60,000 at 33.33%.. The correct answer is $4,800.. This is a common calculation on the Illinois real estate exam.
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