What will the buyer pay for one year's property taxes if the tax rate is 4%?

Rationale

The buyer will pay $10,640 for one year's property taxes.

To calculate the property taxes, the buyer must apply the tax rate of 4% to the property value. Assuming the property value is $266,000, multiplying this amount by the tax rate results in $10,640, which represents the total annual property taxes owed.

A ($10,000) YOUR ANSWER

This amount corresponds to a property value of $250,000 at a 4% tax rate, calculated as $250,000 x 0.04 = $10,000. However, this is not the correct amount since it does not reflect the actual property value used for the tax calculation.

B ($8,000) YOUR ANSWER

An $8,000 tax payment would imply a property value of $200,000 given the 4% rate, as $200,000 x 0.04 = $8,000. This choice is incorrect because it underestimates the true property value in question.

C ($10,640) CORRECT

This is the correct choice, representing the accurate calculation of property taxes owed at a 4% rate based on the assumed property value of $266,000. The calculation is $266,000 x 0.04 = $10,640.

D ($10,440) YOUR ANSWER

This amount suggests a property value of approximately $261,000, calculated as $261,000 x 0.04 = $10,440. While it is close, it does not match the calculation derived from the actual property value, making it incorrect.

Conclusion

The total property tax payment is determined by multiplying the property value by the tax rate. In this scenario, applying a 4% tax rate to a property value of $266,000 yields a total of $10,640. The other choices represent incorrect property values or miscalculations, affirming that option C is the only accurate answer.

What will the buyer pay for one year's property taxes if the tax rate is 4%?

The buyer will pay $10,640 for one year's property taxes.

Related Questions

Related Quizzes

How familiar were you with this question?

Report an Issue

Rate this Practice Test