Real Estate Math

A Wisconsin home originally purchased for $200,000 is assessed at 80% of market value. The mill rate is 25 mills. What is the annual property tax?

A$3,000
B$3,500
C$4,000✓ Correct
D$4,500

Explanation

Assessed value = $200,000 × 80% = $160,000. Tax = $160,000 × 25/1,000 = $160,000 × 0.025 = $4,000. To solve this, multiply the relevant values: $200,000 at 80%.. The correct answer is $4,000.. This is a common calculation on the Wisconsin real estate exam.

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