Real Estate Math
A property has an assessed value of $85,000. The assessment ratio is 25%. What is the estimated market value?
A$21,250
B$340,000✓ Correct
C$255,000
D$85,000
Explanation
Market Value = Assessed Value ÷ Assessment Ratio = $85,000 ÷ 0.25 = $340,000. To solve this, multiply the relevant values: $85,000 at 25%.. The correct answer is $340,000.. This is a common calculation on the Tennessee real estate exam.
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