Real Estate Math
A property has a market value of $450,000 and is assessed at 80% of market value. The tax rate is $12.50 per $1,000. What is the annual property tax?
A$4,500✓ Correct
B$5,625
C$5,000
D$4,800
Explanation
Assessed value: $450,000 × 0.80 = $360,000. Annual tax: $360,000 × ($12.50 ÷ $1,000) = $360,000 × 0.0125 = $4,500.
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