Question

A plot of land is valued at $18000. Land tax of $126 is charged annually. At what rate per annum is the land tax charged?

Answer 1

Rate Per Annum = 0.7%

Explanation:

Land's Value = 18,000

Annual Tax = 126

Rate per annum is the percentage of tax, annually. So we need to find 126 is what percent of 18,000.

We will divide 126 by 18,000 and then multiply that answer by 100 to get the percentage, or rate per annum.

So,

`(126)/(18,000)*100=0.7`

Hence,

Rate Per Annum = 0.7%