A city collects property taxes on vehicles at a rate of $3 for every $100 of the assessed value beyond $10,000 (the first $10,000 is exempt from tax). Fred owns a car whose assessed value is $25,000. How much property tax does Fred pay for his car?

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Mathematics

Trystan Jordan

15 January, 16:58

A city collects property taxes on vehicles at a rate of $3 for every $100 of the assessed value beyond $10,000 (the first $10,000 is exempt from tax). Fred owns a car whose assessed value is $25,000. How much property tax does Fred pay for his car?

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Kramer · Answer 1

He pays $450 in taxes.

Since the first $10,000 of the assessed value is exempt, we subtract $10,000 from the $25,000 assessed:

25000-10000=15000

Now we need to see how many $100-increments are in 15000. We do this by dividing:

15000/100 = 150

Each of these raises the taxes by $3:

150 (3) = 450