Real Estate Math

A property in Oregon has a market value of $480,000 and is assessed at 90% of market value. The tax rate is $12.50 per $1,000 of assessed value. What is the annual property tax?

A$5,400✓ Correct
B$6,000
C$6,750
D$5,700

Explanation

Assessed value: $480,000 × 0.90 = $432,000. Annual tax: $432,000 × ($12.50 ÷ $1,000) = $432,000 × 0.0125 = $5,400.

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