Real Estate Math

A Louisiana property owner receives a $6,800 annual property tax bill. The assessment ratio is 10% and the millage rate is 100 mills. What is the property's approximate market value?

A$680,000✓ Correct
B$68,000
C$578,000
D$720,000

Explanation

Assessed value = Tax ÷ (Millage/1,000) = $6,800 ÷ 0.100 = $68,000.

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