Real Estate Math
An Iowa homeowner's property has a taxable assessed value of $180,000. The tax rate is 20 mills ($20 per $1,000 of assessed value). What is the annual property tax?
A$2,400
B$3,000
C$3,600✓ Correct
D$4,000
Explanation
Property Tax = Assessed Value ÷ 1,000 × Mill Rate = $180,000 ÷ 1,000 × 20 = $3,600. Using the values given ($180,000, $20), apply the appropriate formula.. The correct answer is $3,600.. This is a common calculation on the Iowa real estate exam.
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