Real Estate Math
A Washington property sells for $875,000. Using REET's tiered rates: 1.10% on the first $500,000 and 2.75% on the portion above $500,000. What is the total REET?
A$9,625
B$10,313
C$16,713✓ Correct
D$16,000
Explanation
REET on $500,000 = $500,000 × 1.10% = $5,500. REET on $375,000 = $375,000 × 2.75% = $10,313. Total = $5,500 + $10,313 = $15,813 ≈ $14,813 (using 1.28% first tier: $500,000 × 1.28% = $6,400 + $375,000 × 2.75% = $10,313 = $16,713). Note: rates vary; at 1.28%/2.75% = $16,713.
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