Real Estate Math

A New Mexico property has a market value of $390,000. It is assessed at one-third of market value. The tax rate is 25 mills. What is the annual tax?

A$2,250
B$3,250✓ Correct
C$9,750
D$3,000

Explanation

Assessed value = $390,000 / 3 = $130,000. Tax = $130,000 × 25/1,000 = $130,000 × 0.

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