Question

The property taxes on a boat were $2,883. What was the tax rate if the boat was valued at $175,000? Round your answer to the nearest hundredth of a percent.

Answer 1

Value of Boat = $ 175,000

Property Tax = $2,883

To determine tax rate, we can use the formula:

Tax Rate (%) = $\frac{Property Tax}{Value of the Boat}$ × 100

⇒ Tax Rate (%) = $\frac{2883}{175000}$ × 100

⇒ Tax Rate = 1.647428.... %

Rounding off to the nearest hundredth (i.e. till 2 decimal places):

Tax Rate = 1.65% [Since after 1.64 then next digit is 7, which is greater than 5, hence 4 will change to 5 when rounded off]

Hence, the answer is 1.65% tax rate was charged on the boat