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

Rationale

The buyer will pay $10,000 for one year's property taxes.

To calculate property taxes, the tax rate is applied to the assessed value of the property. In this case, with a tax rate of 4%, the buyer pays $10,000 when the property's assessed value is $250,000 (0.04 x $250,000 = $10,000).

A ($10,000) CORRECT

This choice accurately reflects the property tax calculated at a 4% tax rate on a property valued at $250,000. By multiplying the assessed value by the tax rate (0.04), we arrive at the total tax amount, confirming this as the correct answer.

B ($8,000) YOUR ANSWER

This amount suggests a property value lower than $200,000 in order to arrive at a 4% tax rate calculation (0.04 x $200,000 = $8,000). However, this does not correspond to a property value of $250,000, leading to an understatement of the tax obligation.

C ($10,640) YOUR ANSWER

To reach $10,640 under a 4% tax rate, the assessed value would need to be approximately $266,000 (0.04 x $266,000 = $10,640). This figure does not align with the property value used in this scenario, thus misrepresenting the tax due.

D ($10,440) YOUR ANSWER

This choice implies an assessed value of about $261,000 (0.04 x $261,000 = $10,440). Like the previous options, this calculation incorrectly suggests a different property value, failing to reflect the accurate tax amount due at the stated rate.

Conclusion

In property tax calculations, the correct tax amount is derived directly from the tax rate applied to the assessed property value. With a tax rate of 4% and a property value of $250,000, the buyer's obligation stands at $10,000. The other choices reflect incorrect property values or miscalculations and therefore do not represent the true tax liability.

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

The buyer will pay $10,000 for one year's property taxes.

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