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

Question 12 options:

A)

$1,840

B)

$1,420

C)

$2,750

D)

$1,200

Answer 1

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.