Real Estate Math

A Virginia property tax bill is $4,200 per year. If the assessment rate is $1.05 per $100 of assessed value and the property is assessed at 100% of value, what is the assessed value?

A$380,000
B$390,000
C$400,000✓ Correct
D$410,000

Explanation

Assessed value = ($4,200 ÷ $1.05) × $100 = 4,000 × $100 = $400,000. To solve this, multiply the relevant values: $4,200 and $1.05 at 100%.. The correct answer is $400,000.. This is a common calculation on the Virginia real estate exam.

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