Real Estate Math

A New Mexico property is assessed at $120,000. The tax rate is 25 mills. What is the annual property tax?

A$2,500
B$3,000✓ Correct
C$1,500
D$2,000

Explanation

Property tax = Assessed Value x Mill Rate / 1,000 = $120,000 x 25 / 1,000 = $3,000. Using the values given ($120,000), apply the appropriate formula..

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