Real Estate Math
A house is assessed at 85% of its market value of $280,000. The tax rate is $2.50 per $100 of assessed value. What are the annual property taxes?
A$5,950✓ Correct
B$7,000
C$5,440
D$6,000
Explanation
Assessed value = $280,000 × 85% = $238,000. Tax = ($238,000 / $100) × $2.50 = 2,380 × $2.50 = $5,950.
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