Real Estate Math
A Kentucky property is assessed at $240,000. The tax rate is $0.85 per $100 of assessed value. What is the annual tax?
A$1,700
B$2,040✓ Correct
C$2,160
D$2,400
Explanation
Tax = ($240,000 ÷ $100) × $0.85 = 2,400 × $0.85 = $2,040. Using the values given ($240,000, $0.85), apply the appropriate formula.. The correct answer is $2,040.. This is a common calculation on the Kentucky real estate exam.
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