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Anton [14]
3 years ago
9

Property taxes in a particular district are 4% of the purchase price of a home every year. If you just purchased a $250,000 home

, what is the present value of all the future property tax payments.
Business
1 answer:
avanturin [10]3 years ago
5 0

Answer:

Assume the interest rate used for discounting is 5%.

Then, the present value of all the future property tax payments is $200,000.

Explanation:

We have the annual property tax payment is calculated as: Purchased price * tax rate = 250,000 * 4% = $10,000.

The tax payment will form a perpetuity of $10,000 each ( that is: C = 10,000). We apply the formula for calculating present value of perpetuity with assumption that discount rate is 5% to come up with the answer as below:

PV = C/i = 10,000/5% = $200,000.

So, the answer is $200,000.

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Answer:

C.

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3 years ago
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lubasha [3.4K]

None of the alternatives are correct.

Explanation:

When a builder enters into an agreement to construct a commercial building in the residential areas that violates the laws , as a result the government stops construction. If such a scenario occurs the workers will not be paid as the construction process has stopped, so no productivity will take place and thus the workers will have to face the scenario.

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Batches of peaches produced in one hour = 70/100 = 0.70

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When a payment is sent to the wrong person using p2p, the money cannot be gotten back since it is equivalent to giving money to a wrong account. However, the person can lay a complaint to the customer service to take action.

<h3>What is P2P Payment?</h3>

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