Given:
The market value is $400,000.
The assessed value rate = 70 %=0.7.
The property tax rate is $50 per $ 1000 of assessed value.
Required:
We need to find the property tax amount.
Explanation:
Consider the assessed value formula.
[tex]Assessed\text{ value=Rate}\times Market\text{ value}[/tex]Substitute rate =70 %=0.7 and market value =400000 in the formula.
[tex]Assessed\text{ value=0.7}\times400000[/tex][tex]Assessed\text{ value=\$280000}[/tex]Consider the property tax amount formula.
[tex]propertry\text{ tax=\lparen assessed value}\/1000)\times Rate[/tex]Substitute assessed value = 280000 and rate =50 in the formula.
[tex]propertry\text{ tax=\lparen280000}\/1000)\times50[/tex][tex]propertry\text{ tax=280}\times50[/tex][tex]propertry\text{ tax=\$14000}[/tex]Final answer:
[tex]propertry\text{ tax=\$14,000}[/tex]