Question

The Hackman's home is valued at $650,000. Properties in their area are assessed at 60% of the value, and the local tax rate is $2.85 per one hundred dollars of assessed value. How much are the Hackman's MONTHLY taxes?

Answer 1

Answer:

$926.25

Explanation:

First, we obtain the assessed value:

$650,000 * 60% = $390,000

Now, we obtain the benchmark for determining the yearly tax. We divide the assessed value by one hundred because the local tax rate is $2.85 per one hundred dollars of assessed value. In other words, one hundred dollars is the benchmark:

$390,000 / 100 = $3,900

Now, to find the total tax paid in a year we simply multiply the local tax rate by the benchmark:

$2.85 x 3,900 = $11,115

Finally, we divided the yearly value by twelve to obtain the monthly value:

$11,115 / 12 = $926.25