A property's market value is $400,000 and the assessment ratio is 50%. The tax rate is 30 mills. What is the annual property tax?
Correct Answer
C) $6,000
Step 1: Assessed value = $400,000 × 50% = $200,000. Step 2: Annual tax = $200,000 × 30 ÷ 1,000 = $6,000.
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Related Topics & Key Terms
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Related Concepts
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.
Net operating income (NOI) is the annual income generated by an income-producing property after deducting operating expenses, but before deducting mortgage payments, income taxes, and depreciation.
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