Real Estate Math
A Michigan property's taxable value is $110,000 with a millage rate of 38 mills. What are the annual property taxes?
A$4,180✓ Correct
B$2,090
C$3,800
D$5,500
Explanation
Property tax = Taxable Value x Millage Rate = $110,000 x (38/1,000) = $110,000 x 0.038 = $4,180. Using the values given ($110,000), apply the appropriate formula.. The correct answer is $4,180.. This is a common calculation on the Michigan real estate exam.
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