Answer:
$1,750
Step-by-step explanation:
First, we have to calculate the assessed value which can be determined using the below formula:
Assessed value=Appraised value of home*assessment level
=125,000*35%
=$43,750
The next step is to calculate the cost of each mill which can be calculated using the following formula:
Cost of each mill=Assessed value/1000
=43750/1000
=43.75
The final step is to find the annual taxes, which can be calculated using the following formula:
Annual taxes=cost of each mill*number of mills
=43.75*40
=$1,750