chapter 5 section 7 math

A home is purchased for $350,000. The home will be assessed at 80% of this price. The tax rate will be 15 mills. If the lender requires the property taxes and insurance to be paid into an escrow account, what will be the monthly payment to the escrow account for property taxes?

Remember that each "mill" is 0.001 so 15 mills would 0.015. $350,000 X .80 X .015 = $4,200 annual taxes. $4,200 divided by 12 = $350 monthly payment for taxes in the escrow account. The correct answer is: $350.00.

A home valued at $175,000 is assessed at 60% of market value. The tax rate is $3 per $100 of value. What is the annual tax liability?

$175,000 X .60 X $3 divided by $100 = $3,150 The correct answer is: $3,150.

Bob and Carol own a house with an assessed value of $125,000. The tax rate is 15 mills. Their mortgage payment includes a monthly deposit for the property taxes. They and the lender have received a notice that for the next tax year the assessed value of the home is increasing to $140,000. The tax rate will stay the same. How much will their monthly property tax escrow payment increase in the upcoming tax year?

First compute the monthly deposit for the current tax year: $125,000 X .015 = $1,875; $1,875 divided by 12 = $156.25 monthly escrow for taxes. Next, compute the monthly deposit for the following year: $140,000 X .015 = $2,100; $2,100 divided by 12 = $175.00 monthly escrow for taxes. $17.005 less $156.25 = $18.75 increase. The correct answer is: $18.75 per month.

Which of the following would result in the highest tax for a property assessed at $88,000?

$88,000 / 100 x $3.05 = $2,684. 31.5 x .001 x $88,000 = $2,772. .0305 x $88,000 = $2,684. $88,000 / 1,000 x $31.48 = $2,770. The correct answer is: 31.5 mills

A house purchased last year for $125,000 was assessed at 40% of market value. This year the assessed value has increased 10% and the tax rate is $2.85 per $100. What are the taxes for the current year?

$125,000 x .40 = $50,000 last year's assessment. $50,000 x 1.10 = $55,000 this year's assessment. $55,000 x $2.85 / 100 = $1,567.50. The correct answer is: $1,568

A house that cost $140,000 is assessed at 45% of its value. What are the annual taxes, if the tax rate is $3.20 per thousand dollars?

$140,000 X 45% = $63,000 assessed value. $63,000 X $3.20 / $1,000 = $201.60 or $202 tax. The correct answer is: $202

Property taxes on a home are $3,600 per year. What is the value of the property if the tax rate is $2 per $100 of value on an assessment of 45% of fair market value?

$2 per $100 of value is a 2% tax rate. $3,600 divided by .02 = $180,000. $180,000 divided by .45 = $400,000 market value. The correct answer is: $400,000.

Taxes on a property are $2,100 per year. What is the value of the property if the tax rate is $3.50 per hundred on an assessment of 40% of fair market value?

$2,100 / $3.50 x 100 = $60,000 assessed value and is 40% of market value. Therefore $60,000 / .40 = $150,000 market value. The correct answer is: $150,000

A house that is valued at $210,000 is assessed at 75% of market value. The tax rate is $8.50 per $1,000 of value. What is the annual tax liability on this home?

$210,000 X .75 X $8.50 divided by $1,000 = $1,338.75. The correct answer is: $1,338.75.

A home is valued at $140,000 but is assessed at $125,000. The tax rate is $0.95 per $100 of value. What is the semi-annual tax bill?

The $140,000 market value is irrelevant to this question. $125,000 X $0.095 divided by $100 = $1,187.50 annual taxes. $1,187.50 divided by 2 = $593.75 semi-annual payment. The correct answer is: $593.75.