Question

Mr. Smith's $85,000 condominium is assessed at 35% of value. The tax rate is $2.70 per $100 of value. If the tax increases $.35 per $100 of value, his new tax will be:

Answer 1

Answer:

$907.38

Step-by-step explanation:

We have been given that Mr. Smith's $85,000 condominium is assessed at 35% of value.

First of all, we will find 35% of $85,000 as shown below:

$\frac{35}{100}\times \ 85,000$

$35\times \ 850$

$\ 29,750$

We are also told that the tax rate is $2.70 per $100 of value. Now we will divide $29,750 by 100 as:

$\frac{\ 29,750}{\ 100}=297.50$

Since the tax rate is increased by $0.35 per $100 of value, so the new tax rate will be $2.70 plus $0.35.

$\text{New tax rate}=\ 3.05$

$\text{Amount of new tax}=\ 3.05\times 297.50$

$\text{Amount of new tax}=\ 907.375$

$\text{Amount of new tax}\approx \ 907.38$

Therefore, Mr. Smith's new tax will be $907.38.