Real Estate Math

A property's assessed value is $220,000 and the assessment ratio is 80%. What is the full (market) value used by the assessor?

A$176,000
B$275,000✓ Correct
C$264,000
D$200,000

Explanation

Assessed value = Market value × Assessment ratio. $220,000 = Market value × 0.80. Market value = $220,000 ÷ 0.80 = $275,000.

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