Real Estate Math

An Illinois property has annual property taxes of $8,500. If the tax rate is 3.4% and the state equalization factor is 2.5, what is the assessed value?

A$100,000✓ Correct
B$250,000
C$85,000
D$68,000

Explanation

Working backwards: EAV × Tax Rate = Annual Taxes → EAV = $8,500 ÷ 0.034 = $250,000.

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