Question

A school district’s property tax rate rises from 2.5% to 2.7% to cover a $300,000 budget deficit (shortage of money). What is the value of the property in the school district to the nearest dollar? (Note: Property is assessed at 100% of its value.)

Answer 1

A school district’s property tax rate rises from 2.5% to 2.7% to cover a $300,000 budget deficit (shortage of money).

What is the value of the property in the school district to the nearest dollar?

Let x represents the value of the property in the school district.

The increase in property tax rate is

`2.7\%-2.5\%=0.2\%`

0.2% means 0.2/100 = 0.002 (in decimal)

So, we can write the following equation

`0.002x=\$300,000`

Let us solve the equation for x.

`\begin{gathered} (0.002x)/(0.002)=(\$300,000)/(0.002) \\ x=\$150,000,000 \end{gathered}`

Therefore, the value of the property in the school district (to the nearest dollar) is

`\$150,000,000`

That is 150 million dollars.