Real Estate Math

A property is assessed at 80% of its market value of $380,000. The tax rate is $12.50 per $1,000 of assessed value. What is the annual property tax?

A$3,800✓ Correct

B$4,750

C$3,040

D$2,660

Explanation

Assessed value = $380,000 × 80% = $304,000. Annual tax = ($304,000 ÷ $1,000) × $12.50 = 304 × $12.50 = $3,800.

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