Real Estate Math
A Michigan seller paid $3.75/$500 state transfer tax on a sale. If the total state tax was $2,625, what was the sale price?
A$350,000✓ Correct
B$375,000
C$400,000
D$325,000
Explanation
Number of $500 units = $2,625 / $3.75 = 700 units. Sale price = 700 x $500 = $350,000. Using the values given ($3.75, $500), apply the appropriate formula.. The correct answer is $350,000.. This is a common calculation on the Michigan real estate exam.
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