A property is assessed at $190,000 with a mill rate of 20. What is the annual property tax?
Correct Answer
B) $3,800
One mill equals $1 per $1,000 of assessed value, so 20 mills = $20 per $1,000, which converts to a decimal multiplier of 0.020. Annual property tax = $190,000 × 0.020 = $3,800.
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Related Topics & Key Terms
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Related Concepts
IRV stands for Income, Rate, and Value. It represents the relationship between Net Operating Income (I), Capitalization Rate (R), and Property Value (V).
Loan qualification math involves calculating the debt-to-income ratios that lenders use to determine whether a borrower qualifies for a mortgage. The two primary ratios are the front-end (housing expense) ratio and the back-end (total debt) ratio.
Monthly interest is the portion of the total annual interest that is paid or accrued each month.
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