Real Estate Math
A Pennsylvania home's assessed value is $180,000 and the assessment ratio is 80%. What is the estimated market value?
A$144,000
B$225,000✓ Correct
C$200,000
D$216,000
Explanation
Market Value = Assessed Value ÷ Assessment Ratio = $180,000 ÷ 0.80 = $225,000. If assessors use 80% of market value as the assessment base, dividing the assessment by that ratio back-calculates the implied market value. Assessment ratios vary by Pennsylvania county.
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