Question

The house your brother wants to buy has a value of $220,000. He has just learned that he would need to pay property taxes, and the property tax rate in the area is 1.3 percent. He asks you to help him estimate his property taxes.

Approximately how much can your brother expect to pay in property taxes?
Question 9 options:

$28,600 upfront


$2,860 upfront


$28,600 each year


$2,860 each year

Answer 1

1.3% of $220,000 = 0.013 × 220,000 = $2,860. So he can expect to pay about $2,860 each year.