Real Estate Math

A Rhode Island property owner pays annual property taxes of $5,400. The tax rate is $18 per $1,000. What is the assessed value?

A$97,200
B$300,000✓ Correct
C$540,000
D$972,000

Explanation

Assessed value = Annual tax / (Tax rate / $1,000) = $5,400 / 0.018 = $300,000.

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