Real Estate Math
A property is assessed at 80% of its market value of $250,000. At a tax rate of 12 mills, what is the annual tax?
A$1,500
B$2,400✓ Correct
C$3,000
D$2,000
Explanation
Assessed value = $250,000 × 0.80 = $200,000. Tax = $200,000 × 12 ÷ 1,000 = $2,400. To solve this, multiply the relevant values: $250,000 at 80%.. The correct answer is $2,400.. This is a common calculation on the Kentucky real estate exam.
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