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

$907.38

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:

`(35)/(100)* \$85,000`

`35* \$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:

`(\$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* 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.