A house sells for $200000; buyer puts 20% down and finances 80%. Assessed value is $214000 and the tax rate is 3%. Annual property tax is

Rationale

Annual property tax is $6,420.

To calculate the annual property tax, we first need to determine the assessed value of the house, which is $214,000. With a tax rate of 3%, the annual property tax is calculated by multiplying the assessed value by the tax rate: $214,000 * 0.03 = $6,420.

A ($6,000) YOUR ANSWER

This option results from a miscalculation of the property tax. If one mistakenly used a lower tax rate of approximately 2.8%, it might yield a figure close to $6,000. However, the correct tax rate based on the provided information is 3%, which does not support this total.

B ($4,800) YOUR ANSWER

Choosing this figure may suggest an incorrect assessment of the tax rate or the assessed value. Calculating $4,800 would imply a tax rate of about 2.24% on the assessed value of $214,000, which is significantly lower than the actual tax rate of 3%.

C ($6,420) CORRECT

This is the correct answer, as derived from the calculation of the annual property tax based on the assessed value and the tax rate. Multiplying the assessed value ($214,000) by the tax rate (3%) confirms this total.

D ($6,510) YOUR ANSWER

This option likely arises from a miscalculation, possibly using a slightly higher tax rate of approximately 3.04%. However, the correct tax rate is 3%, making this figure inaccurate for the calculation of the annual property tax based on the given assessed value.

Conclusion

The annual property tax reflects the direct application of the tax rate to the assessed value of the home. In this case, the property tax is derived from the assessed value of $214,000 at a tax rate of 3%, which accurately results in an annual tax of $6,420. All other options either miscalculate the tax rate or misinterpret the assessed value, underscoring the importance of correct calculations in determining property taxes.

A house sells for $200000; buyer puts 20% down and finances 80%. Assessed value is $214000 and the tax rate is 3%. Annual property tax is

Annual property tax is $6,420.

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