Question

Terry Sheehan owns property assessed at $390,000 and pays a property tax rate of 1.69 per hundred dollars of assessed value. He charges $690 per month rent to cover his

property tax bill. How much more rent does he collect each year above the annual property tax bill?
$2,090
$1.769
$1,854
$1,689
None of these choices are correct.

Answer 1

$1689

Explanation:

Excess of rent amount over annual property tax bill = annual rent - annual property tax

annual property tax = [(assessed property value / 100) x 1.69]

( $390,000 / 100) x 1.69 = $6591

Annual rent = $690 x 12 = $8280

$8280 - $6591 = $1689