"What is the tax on a property with an assessed value of $88,700 if the tax rate is 4.5% of the assessed value? Property tax = (Round to the nearest cent.)
"What is the tax on a property with an assessed value of $88,700 if the tax rate is 4.5% of the assessed value? Property tax = (Round to the nearest cent.)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
![**Property Tax Calculation Example**
To determine the tax on a property with an assessed value of $88,700 when the tax rate is 4.5% of the assessed value, you can follow the given steps:
1. **Understand the Tax Rate**: The tax rate is 4.5%, which indicates that for every dollar of assessed property value, 4.5 cents is paid as tax.
2. **Calculate the Property Tax**: Multiply the assessed value of the property by the tax rate (expressed as a decimal).
\[ \text{Property Tax} = \text{Assessed Value} \times \text{Tax Rate} \]
In this scenario:
\[ \text{Assessed Value} = \$88,700 \]
\[ \text{Tax Rate} = 4.5\% = 0.045 \]
Hence:
\[ \text{Property Tax} = 88,700 \times 0.045 \]
\[ \text{Property Tax} = 3,991.50 \]
So, the property tax calculated is $3,991.50. (Round to the nearest cent as needed.)
---
**Note**: There are no graphs or diagrams included in this example.
**Interactive Element**:
\[ \text{Property tax} = \[ \boxed{\$ \_} \] \]
*(Round to the nearest cent.)*](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd84f55b1-6045-46a9-9610-9a34a878a241%2F979415e9-99f7-4a5a-a76c-f9b52538133c%2F4wb60cs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Property Tax Calculation Example**
To determine the tax on a property with an assessed value of $88,700 when the tax rate is 4.5% of the assessed value, you can follow the given steps:
1. **Understand the Tax Rate**: The tax rate is 4.5%, which indicates that for every dollar of assessed property value, 4.5 cents is paid as tax.
2. **Calculate the Property Tax**: Multiply the assessed value of the property by the tax rate (expressed as a decimal).
\[ \text{Property Tax} = \text{Assessed Value} \times \text{Tax Rate} \]
In this scenario:
\[ \text{Assessed Value} = \$88,700 \]
\[ \text{Tax Rate} = 4.5\% = 0.045 \]
Hence:
\[ \text{Property Tax} = 88,700 \times 0.045 \]
\[ \text{Property Tax} = 3,991.50 \]
So, the property tax calculated is $3,991.50. (Round to the nearest cent as needed.)
---
**Note**: There are no graphs or diagrams included in this example.
**Interactive Element**:
\[ \text{Property tax} = \[ \boxed{\$ \_} \] \]
*(Round to the nearest cent.)*
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