Real Estate Math

A NJ property is assessed at $280,000, and the tax rate is $2.50 per $100 of assessed value. What are the annual property taxes?

A$5,600
B$6,000
C$7,000✓ Correct
D$8,000

Explanation

$280,000 ÷ 100 × $2.50 = $7,000 annual property taxes. Using the values given ($280,000,, $2.50), apply the appropriate formula.. The correct answer is $7,000.. This is a common calculation on the New Jersey real estate exam.

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