Real Estate Math
A Tennessee property is assessed at 25% of market value. If the market value is $320,000 and the tax rate is $4.50 per $100 of assessed value, what is the annual property tax?
A$3,600✓ Correct
B$14,400
C$4,500
D$1,800
Explanation
Assessed value = $320,000 × 25% = $80,000. Tax = ($80,000 ÷ $100) × $4.50 = 800 × $4.50 = $3,600. To solve this, multiply the relevant values: $320,000 and $4.50 at 25%.. The correct answer is $3,600.. This is a common calculation on the Tennessee real estate exam.
Related Tennessee Real Estate Math Questions
- A Tennessee home seller paid $245,000 for a property 5 years ago and is selling it today for $312,000. What is the percentage gain over the 5-year period?
- A property with an effective gross income of $145,000 and operating expenses of $52,200 is purchased at a 7.25% cap rate. What is the purchase price?
- Using a 360-day banker's year, how many days is the proration period if closing occurs on March 15? (Seller pays through day of closing.)
- A property is financed with a $150,000 loan at 7% annual interest for 30 years. The monthly P&I payment is $997.95. After the first payment, approximately how much of the payment goes to principal?
- A Tennessee seller nets $248,000 after paying a 6% commission. What was the sale price?
- A Tennessee property has a potential gross income of $60,000, a 5% vacancy rate, and operating expenses of $22,000. What is the net operating income?
- A buyer qualifies for a maximum monthly PITI payment of $1,800. Monthly property taxes are $250, insurance is $100. What is the maximum monthly P&I payment the buyer can afford?
- A Tennessee seller owes $212,000 on a mortgage. After paying a 6% commission and $4,800 in other closing costs, the seller nets $38,000. What was the sale price?
Practice More Tennessee Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Tennessee Quiz →