Real Estate Math

A NH property's market value is $385,000. The town assesses it at 85% of market value. The tax rate is $18.50 per $1,000 of assessed value. What is the annual tax?

A$7,123
B$6,052✓ Correct
C$7,128
D$5,775

Explanation

Assessed value = 85% × $385,000 = $327,250. Annual tax = ($327,250 / 1,000) × $18.

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