Real Estate Math

A Maine property has annual taxes of $6,400 and the local tax rate is $16.00 per $1,000 of assessed value. The assessed value is:

A$300,000
B$400,000✓ Correct
C$350,000
D$250,000

Explanation

Assessed value = Annual taxes ÷ Tax rate per $1,000 × 1,000 = $6,400 ÷ 16 × 1,000 = $400,000. Using the values given ($6,400, $16.00), apply the appropriate formula.. The correct answer is $400,000.. This is a common calculation on the Maine real estate exam.

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