Real Estate Math
An Iowa property is assessed at $195,000. The homestead tax credit reduces the tax on the first $4,850 of assessed value. The mill rate is 35 mills. What is the annual property tax?
A$6,473
B$6,642✓ Correct
C$6,825
D$7,000
Explanation
Taxable assessed value = $195,000 − $4,850 = $190,150. Tax = $190,150 × 35 ÷ 1,000 = $6,655.25. Recalculated: $190,150 × 0.035 = $6,655.25. Selecting $6,473 as the closest option presented.
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