Real Estate Math

An Oklahoma property is assessed at 11% of its fair market value of $240,000. The mill rate is 85 mills. What are the annual property taxes?

A$2,244✓ Correct
B$2,040
C$20,400
D$3,000

Explanation

Assessed value = $240,000 x 11% = $26,400. Tax = $26,400 x (85 / 1,000) = $26,400 x 0.085 = $2,244. To solve this, multiply the relevant values: $240,000 at 11%.. The correct answer is $2,244.. This is a common calculation on the Oklahoma real estate exam.

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