Question

John and Mary Billings own a condominium with an assessed value of $110,000. If the tax rate is 25 mills per $1.00 of assessed valuation, how much tax do they pay?
Question 12 options:

A)

$1,840

B)

$1,420

C)

$2,750

D)

$1,200

Answers

Answered by GPT-4o mini
To calculate the property tax, you can use the formula:

\[
\text{Tax} = \text{Assessed Value} \times \left(\frac{\text{Tax Rate (in mills)}}{1000}\right)
\]

1. **Assessed value** of the condominium: $110,000
2. **Tax rate**: 25 mills (which is equivalent to \( \frac{25}{1000} = 0.025 \))

Now plug in the values:

\[
\text{Tax} = 110,000 \times 0.025
\]

\[
\text{Tax} = 110,000 \times 0.025 = 2,750
\]

So, the amount of tax John and Mary Billings pay is **$2,750**.

The correct answer is **C) $2,750**.

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