A property's market value is $500,000 and the assessment ratio is 40%. What is the assessed value?
Correct Answer
A) $200,000
Step 1: Assessed value = Market value × Assessment ratio = $500,000 × 40% = $200,000.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Net Operating Income (NOI) is the revenue a property generates after deducting all operating expenses.
Converting a percentage to a decimal involves dividing the percentage value by 100.
In real estate, property value can be estimated by dividing the Net Operating Income (NOI) by the Capitalization Rate (Cap Rate).
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