Question

The Ricardos own a home whose market value is $123,000. Their municipality taxes at 75% and the rate is 60 mills or $60 per thousand. What will the Ricardos pay in taxes?

a) $5,535
b) $9,250
c) $7,380

Answer 1

Option A seems to be correct

Answer 2

Option a - $5,535 would be correct

Explanation:

Market value of Ricardos home = $123,000

Municipality taxes at = 75% of the value

= 75% of 123,000 = 0.75 × 123,000

= $92,250

Taxes will pay at the amount $92,250 at the rate 60$ per thousand.

Therefore we divide this amount to 1000.

= 92,250 ÷ 1000 = 92.25

Tax rate is $60 for one thousand, therefore

60 × 92.25 = $5,535

Ricardos pay $5,535 in taxes.

Option A would be correct.