To understand the concept of assessed valuation, we need to look into basic property assessment principles. The assessed valuation of a property is usually a percentage of its market value, as determined by the assessment rate. This rate is set by the local government for tax purposes.
The correct relationship is captured by the formula:
[tex]\[ \text{Assessed Valuation} = \text{Assessment Rate} \times \text{Market Value} \][/tex]
Now, let's analyze the options provided:
1. Times the book value: This option is not correct because assessed valuation is calculated based on the market value, not the book value.
2. Divided by the market value: This option is not correct because dividing by the market value is not a part of the formula for assessed valuation.
3. None of the answer choices are correct: This option can be initially considered but only if we do not find a matching correct choice.
4. Plus the market value: This option is not correct because the assessed valuation is not directly added to the market value.
5. Times the market value: This is the correct option. The assessed valuation is calculated by multiplying the assessment rate by the market value.
Therefore, the correct answer is:
Times the market value
