Question

A house appraised for tax purposes at $125,000 is taxed at an annual rate of $3 per each $100 of appraised value. The yearly tax is:

a) $3,000
b) $3,250
c) $3,750
d) $4,000

Answer 1

To calculate the yearly tax, multiply the appraised value by the tax rate per $100 of value. In this case, $125,000 appraised at $3 per $100 results in a yearly tax of $3,750.

Step-by-step explanation:

The student's question pertains to calculating the yearly property tax based on an appraised value of $125,000 and a tax rate of $3 for every $100 of appraised value. To solve this, we multiply the appraised value ($125,000) by the tax rate ($3 per $100). Since $100 goes into $125,000 a total of 1,250 times, we then multiply $3 by 1,250 to get the annual tax amount:

1,250 × $3 = $3,750

Therefore, the correct answer is c) $3,750.