Real Estate Math

A buyer pays $312,000 for a home. The property tax rate is 1.5% of assessed value, and the assessment ratio is 25%. What are the annual property taxes?

A$1,170✓ Correct
B$1,404
C$4,680
D$2,340

Explanation

Assessed value = $312,000 × 0.25 = $78,000.

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