Solve the Problem. -In One County, Property Is Assessed at 45% of Market

question 52

Multiple Choice

Solve the problem.
-In one county, property is assessed at 45% of market value with a tax rate of 35.8 mills. In a second county, property is assessed at 33% of market value with a tax rate of 42.0 mills. If you had $110,000 to spend on a house, which county would charge the lower property tax? Find the annual amount saved.

• A)First county, $2,475.00
• B)Second county, $2,475.00
• C)Second county, $247.50
• D)First county, $247.50

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Definitions:

Firm

A business organization, such as a corporation, limited liability company, partnership, or sole proprietorship, that sells goods or services.

Fixed Costs

Business expenses that are not affected by the level of goods or services produced by the business, such as rent, salaries, and insurance.

Price-Taking

A market condition where individual buyers or sellers have no influence over the price of a product due to its abundance in the market and the presence of many competitors.

Bushel

A unit of volume that is used primarily in agriculture, equivalent to about 35.24 liters in the U.S. for dry goods.