Real Estate Math

A property is assessed at $240,000 at a rate of 90% of market value. The property tax rate is $18 per $1,000 of assessed value. What are the annual taxes?

A$3,888
B$4,320✓ Correct
C$4,800
D$3,600

Explanation

Annual taxes = ($240,000 ÷ 1,000) × $18 = 240 × $18 = $4,320. To solve this, multiply the relevant values: $240,000 and $18 at 90%.. The correct answer is $4,320.. This is a common calculation on the New Hampshire real estate exam.

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