Real Estate Math

A NJ property has an assessed value of $400,000 with an equalization ratio of 80%. What is the property's estimated market value?

A$320,000

B$500,000✓ Correct

C$480,000

D$420,000

Explanation

Market Value = Assessed Value ÷ Equalization Ratio = $400,000 ÷ 0.80 = $500,000. To solve this, multiply the relevant values: $400,000 at 80%.. The correct answer is $500,000.. This is a common calculation on the New Jersey real estate exam.

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