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# Example 1 - PowerPoint PPT Presentation

Example 1.

I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.

## PowerPoint Slideshow about 'Example 1' - jera

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Presentation Transcript

Beth’s parents own a home worth \$200,000. The assessed value of the home according to the County Assessor is \$125,000. While Beth’s parents could sell the home for \$200,000, they only have to pay property taxes on \$125,000. The annual property tax rate in Beth’s county is 1.2%. Use this information to answer the questions below.

Solutions

• What percent of the market value is the assessed value of the home?

• x = % Equation: Assessed Value = x% (market Value) 125,000 = x (200,000) 125,000 ÷ 200,000 = x (200,000) ÷ 200,000 divide both sides by 200,000

• .625 = x Change the decimal to a percent by multiplying by 100 62.5%

• ANSWER: The assessed value is 62.5% of the market value.

• What is the annual property tax on the home?

• Equation: Property Tax = tax rate ( assessed value)

• Tax rate = 1.2% = .012 (covert the % to a decimal for the equation)

• Assessed Value = \$125,000

• Property Tax = .012 (125,000) Property Tax = \$1,500

• ANSWER: The annual Property Tax is \$1,500

Christy has a house with a market value of \$275,000 and an assessed value of \$230,000. The annual property tax rate is \$17 per \$1,000 of assed value. Use this information to answer the questions below.

Solutions

• a. What is the annual property tax on the home?

• Equation: Property Tax = Assessed value ÷ 1,000 • tax rate per 1,000

• = 230,000 ÷ 1,000 • 17 = \$3,910

• ANSWER: The annual Property Tax is \$3,910

• If she pays her property taxes monthly, how much does she pay per month? Round to the nearest cent.

• Equation: Monthly Payment = Annual Property Tax ÷ 12

• = \$3,912 ÷ 12 = \$326.00

• ANSWER: The monthly payment is \$326.00.

Mr. and Mrs. Morgan are considering purchasing a house with a market value of \$250,000. The assessed value of the house is 58% of the market value and the property tax rate is 1.45% of the assed value. Use this information to answer the questions below

Solutions

• What is the assessed value of the house?

• EQUATION: Assessed value = % (Market Value) 58%= .58 Change the percent to a decimal by dividing by 100 to put it in the equation Assessed Value = .58 (250,000) Assessed Value = \$145,000

• ANSWER: The assessed value is \$145,000

• What is the annual property tax on the home?

• Equation: Property Tax = tax rate ( assessed value)Tax rate = 1.45% = .0145 (covert the % to a decimal for the equation)

• Property Tax = .0145 (145,000)Property Tax = \$2,102.50

• ANSWER: The Annual property tax is \$2,102.50

Spencer’s owns a home with an assessed value of \$110,000 and a market value of \$190,000. The tax rate is 1.38% of the assessed value. His taxes are paid by his mortgage lender, so the property is included in his monthly mortgage payment. Use this information to answer the questions below.

Solutions

• What is the annual property tax on the home?

• Equation: Property Tax = tax rate ( assessed value)Tax rate = 1.38% = .0138 (covert the % to a decimal for the equation)

• Property Tax = .0138 (110,000)Property Tax = \$1.518ANSWER: The Annual property tax is \$1,518.00

• How much is he paying for his property tax per month?

• Equation: Monthly Payment = Annual Property Tax ÷ 12

• = \$1,518 ÷ 12 = \$126.50

• ANSWER: The monthly payment is \$126.50

• c. What percent of his mortgage payment is his property tax if his mortgage payment is \$1,050 per month?

• Answer the question: \$126.50 is what percent of \$1,050? Let x = percent

• Equation: 126.50 = x (1050)

• 126.50 ÷ 1050 = 1050x ÷ 1050 divide both sides by 1050

• 0.12047 = x Change it to a percent by multiplying by 10012 %

• ANSWER: The Property tax is 12% of his monthly mortgage payment.