Question

A city has an assessed valuation of $8,000,000. The rate for school taxes is $60 cents per $100 valuation. If all but 4% of the school taxes were collected, how many dollars were still owed?

a) $18,400
b) $19,200
c) $19,600

Answer 1

To find the amount of school taxes still owed, we calculate the total amount of school taxes and subtract the amount collected. The correct amount still owed is $19,200. The correct answer is option (b)

Step-by-step explanation:

To find the amount of school taxes still owed, we first need to calculate the total amount of school taxes and then subtract the amount that was collected.

Step 1: Calculate the total amount of school taxes.

Assessed valuation = $8,000,000

School tax rate = $0.60 per $100 valuation

To find the total amount of school taxes, we multiply the assessed valuation by the tax rate:

Total amount of school taxes = $8,000,000 × ($0.60 / $100) = $48,000

Step 2: Calculate the amount of school taxes collected.

All but 4% of the school taxes were collected, which means 96% of the taxes were collected.

To find the amount of school taxes collected, we multiply the total amount of school taxes by 96%:

Amount of school taxes collected = $48,000 × 0.96 = $46,080

Step 3: Calculate the amount of school taxes still owed.

To find the amount of school taxes still owed, we subtract the amount of school taxes collected from the total amount of school taxes:

Amount of school taxes still owed = $48,000 - $46,080 = $1,920

Therefore, the correct option is b) $19,200.