Real Estate Math
A South Dakota home is assessed at $195,000. The mill rate is 20 mills. What are the annual property taxes?
A$1,950
B$3,900✓ Correct
C$3,750
D$4,000
Explanation
1 mill = $1 per $1,000. Property taxes = $195,000 × (20/1000) = $195,000 × 0.02 = $3,900. Using the values given ($195,000), apply the appropriate formula.. The correct answer is $3,900.. This is a common calculation on the South Dakota real estate exam.
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