Real Estate Math

A New York property has an assessed value of $180,000 and the local tax rate is $12 per $1,000 of assessed value. What is the annual property tax?

A$1,800
B$2,160✓ Correct
C$15,000
D$21,600

Explanation

Annual tax = Assessed Value × Tax Rate = $180,000 × ($12/$1,000) = $180,000 × 0.012 = $2,160.

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