Real Estate Math

A NJ homeowner's property tax bill is $8,400 per year. If the assessment ratio is 90% and the tax rate is $3.50 per $100, what is the market value?

A$240,000

B$266,667✓ Correct

C$300,000

D$280,000

Explanation

Assessed value = Tax bill ÷ (Rate ÷ 100) = $8,400 ÷ 0.035 = $240,000. Market value = Assessed value ÷ Assessment ratio = $240,000 ÷ 0.90 = $266,667.

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