Property tax

Question

A house is worth $150,000 on July 1, 1995. It was worth $280,000 on July 1, 2007. The owner pays property of 1.8% of the value of the house. Assuming a constant annual rate of increase in value how much did the owner pay when she paid the property tax on July 1, 2002?

Answer 1

To find how much the owner paid in 2002, we need to find out how much worth the house  in 2002. It increased form $150,000 in July, 1995 to $280,000 in July, 2007:  $280,000-$150,000=$130,000 in 13 years.

$130.000/13=$10,000 each year. So it worth $150,000+$8000 =$158,000 in 2002.

Property tax: $158,000*1.8%=$158,000*1.8/100=$1580*18= |multiply and you have the answer|