Real Estate Math
A property's assessed value is $180,000. The tax rate is 25 mills. What is the annual property tax?
A$3,500
B$4,500✓ Correct
C$4,250
D$5,000
Explanation
1 mill = $1 per $1,000 of assessed value. Tax = $180,000 x (25/1,000) = $180,000 x 0.025 = $4,500. Using the values given ($180,000), apply the appropriate formula.. The correct answer is $4,500.. This is a common calculation on the North Dakota real estate exam.
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