Question

A condominium owner pays property taxes of $2,000 per year. If taxes are figured

at a rate of $1.25 for every $100 in value, what is the value of his condominium?

Answer 1

Explanation:

the tax rate gives us a ratio of tax amount to value.

this ratio (in our case 1.25/100) is constant for any value.

therefore, when we know how many $1.25 units are in $2000, we know that there are exactly as many $100 units in the value.

in other words, we multiply

1.25/100 × f/f

so that the numerator reaches the total of $2000 of taxes. and then the enumerator gives us the total value.

f = 2000 / 1.25 = 1600

so, we get

1.25/100 × 1600/1600 = 2000 / 160000

so, the value of the condominium is

value = $160,000