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? A. $1,420 B. $1,840 C. $1,200 D. $2,750

Answer 1

Answer:

option (D) $ 2,750

Explanation:

Data provided :

Assessed value of John and Mary Billings = $ 110,000

Tax rate = 25 mills per  $ 1.00

or

Tax rate in dollars = 25/1000 = 0.025 / $ 1.00

therefore,

Tax they have to pay = Assessed value of John and Mary Billings × Tax rate

or

Tax to be paid = $ 110,000 × 0.025 = $ 2,750

Hence,

the correct answer is option (D) $ 2,750