Real Estate Math

A North Dakota property has an assessed value of $175,000. The assessment ratio in the county is 50%. What is the taxable value?

A$175,000
B$87,500✓ Correct
C$262,500
D$350,000

Explanation

Taxable value = Assessed value × Assessment ratio = $175,000 × 50% = $87,500. In some jurisdictions, property is assessed at a percentage of market value, and taxes are calculated on the taxable (assessed) value.

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