Question

1. the market value of dustins business is $250,000. the assessment rate is 60%. the local property tax rate is $40.00 per $1,000 of assessed value. what is dustins property tax?

$150,000
$6,050
$6,000
$5,500

Explanation:

Step1: Calculate assessed value

The market value is $250,000 and the assessment rate is 60% (or 0.6). So the assessed value is calculated as $250,000\times0.6 = 150,000$.

Step2: Calculate property tax

The local property tax rate is $40 per $1,000 of assessed value. First, we find out how many thousands are in the assessed value. The assessed value is $150,000, so the number of thousands is $\frac{150,000}{1,000}=150$. Then the property tax is $40\times150 = 6,000$.

Answer:

$6,000$ (corresponding to the option with $6,000$)