Rationale
The annual property tax is $6420.
To calculate the annual property tax, we take the assessed value of the house, which is $214,000, and multiply it by the tax rate of 3%. This results in an annual property tax of $6,420.
A) $6000
This option incorrectly represents the annual property tax. While it is close to the correct answer, it does not account for the full assessed value of the property multiplied by the tax rate. The calculation of 3% on $214,000 yields a higher tax amount.
B) $4800
Choosing $4,800 is also incorrect, as it suggests a tax rate or assessed value that does not reflect the actual figures provided in the question. Specifically, $4,800 is derived from a different tax rate or a miscalculation of the assessed value.
C) $6420
This choice is correct because it accurately represents the annual property tax calculated from the assessed value of $214,000 at a tax rate of 3%. The calculation is straightforward: $214,000 * 0.03 = $6,420.
D) $6510
This option overestimates the annual property tax. It may result from an error in applying the tax rate or misunderstanding the assessed value. The correct tax amount is lower, as shown in the calculation of 3% on the assessed value.
Conclusion
The annual property tax of $6,420 is determined by applying the tax rate of 3% to the assessed value of $214,000. The other options fail to accurately reflect this calculation, either by underestimating or overestimating the tax based on incorrect assumptions about the assessed value or rate. Understanding how to calculate property taxes is essential for financial planning in real estate transactions.
