Real Estate Math
A Mississippi home is assessed at 10% of market value. The tax rate is 80 mills. If the market value is $200,000, the annual tax is:
A$1,600✓ Correct
B$800
C$2,000
D$16,000
Explanation
Assessed value = $200,000 × 10% = $20,000. Tax = $20,000 × (80 ÷ 1,000) = $20,000 × 0.08 = $1,600. To solve this, multiply the relevant values: $200,000, at 10%.. The correct answer is $1,600.. This is a common calculation on the Mississippi real estate exam.
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