Real Estate Math
A Michigan property's market value is $220,000. The SEV is 50% of market value. With a 35-mill tax rate applied to the SEV, what are the annual property taxes?
A$3,850✓ Correct
B$7,700
C$4,400
D$2,750
Explanation
SEV = 50% x $220,000 = $110,000. Tax = $110,000 x (35/1,000) = $110,000 x 0.035 = $3,850. To solve this, multiply the relevant values: $220,000 at 50%.. The correct answer is $3,850.. This is a common calculation on the Michigan real estate exam.
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