Question

The Franklin Family wants to buy a home. They narrowed the choice down to a $125,000...

The Franklin Family wants to buy a home. They narrowed the choice down to a $125,000 home in Louisville and a $138,000 home in Big Creek. With regard to property taxes, Louisville has an assessment rate of 100% and a tax rate of $1.85 per $100 of assessed value, while Big Creek has an 80% assessment rate and a tax rate of 21.6 mills. Determine which house has the higher property tax, and by how much? Round to the nearest cent.

Homework Answers

Answer #1

Calculation of Property Tax in Louisville

Assessment Rate of 100% on $125000 = $125000

Per $100 of assessed value = 125000 / 100 = $1250

Property Tax = $1.85 * 1250

= $2312.5

Calculation of Property Tax in Big Creek

Assessment Rate of 80% on $138000 = .80 * 138000

= $110400

Tax Rate = 21.6 mills

21.6 mills to dollars = 21.6 / 1000 = .0216

Thus Property Tax = .0216 * $110400

= $2384.64

Thus House in Big Creek has higher property tax of $2384.64

Difference = 2384.64 - 2312.5

= $72.14

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Please do not attempt if you're not going to answer everything. If you don't answer everything...
Please do not attempt if you're not going to answer everything. If you don't answer everything I will report you. Just put the number and the choice. Thanks. 31. The NY energy code regulates all of the following except which? Heating and air conditioning systems Setback requirements Electrical and lighting systems Type of fuel used for heating 32. What do we call the idea that money available at the present time is worth more than the same amount in the...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary...
Please answer the following Case analysis questions 1-How is New Balance performing compared to its primary rivals? How will the acquisition of Reebok by Adidas impact the structure of the athletic shoe industry? Is this likely to be favorable or unfavorable for New Balance? 2- What issues does New Balance management need to address? 3-What recommendations would you make to New Balance Management? What does New Balance need to do to continue to be successful? Should management continue to invest...
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation....
Using the model proposed by Lafley and Charan, analyze how Apigee was able to drive innovation. case:    W17400 APIGEE: PEOPLE MANAGEMENT PRACTICES AND THE CHALLENGE OF GROWTH Ranjeet Nambudiri, S. Ramnarayan, and Catherine Xavier wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. This publication may not be...