Question

sales and property taxes a commercial property is valued at $2.5 million in district o with a tax rate of 1.8% versus a rate of 2.2% in district p. how much higher is the tax in district p annually? $20,000 $15,000 $8,000 $10,000

Explanation:

Step1: Calculate tax for District O

First, convert the property value to a numerical value: $\$2.5$ million $= \$2,500,000$.
Tax for District O: $2,500,000 \times 1.8\% = 2,500,000 \times 0.018 = 45,000$

Step2: Calculate tax for District P

Tax for District P: $2,500,000 \times 2.2\% = 2,500,000 \times 0.022 = 55,000$

Step3: Find the tax difference

Subtract District O's tax from District P's tax: $55,000 - 45,000 = 10,000$

Answer:

$\$10,000$