Real Estate Math
A home's assessed value is $120,000 and the assessment ratio is 25% of market value. What is the estimated market value?
A$30,000
B$480,000✓ Correct
C$360,000
D$240,000
Explanation
Market Value = Assessed Value ÷ Assessment Ratio = $120,000 ÷ 0.25 = $480,000. To solve this, multiply the relevant values: $120,000 at 25%.. The correct answer is $480,000.. This is a common calculation on the Tennessee real estate exam.
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