Real Estate Math
An Indiana property is assessed at $220,000. The homestead deduction reduces the assessed value by $45,000. The tax rate is 2.0%. What are the annual taxes after the homestead deduction?
A$3,500✓ Correct
B$3,900
C$4,400
D$5,500
Explanation
Taxable assessed value = $220,000 − $45,000 = $175,000. Taxes = $175,000 × 0.020 = $3,500. To solve this, multiply the relevant values: $220,000 and $45,000 at 2.0%.. The correct answer is $3,500.. This is a common calculation on the Indiana real estate exam.
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