Real Estate Math

A Michigan home appraised at $400,000 is assessed at 50% of appraised value. The millage rate is 40 mills. What is the annual property tax?

A$8,000✓ Correct
B$6,000
C$4,000
D$16,000

Explanation

Assessed value = $400,000 × 50% = $200,000. Annual tax = $200,000 × (40 ÷ 1,000) = $200,000 × 0.040 = $8,000.

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