Question

A family buys a house in New Jersey for $304,000. (That’s the median price for the state) The property tax is 2.38%. How much will the property tax cost?

Answer 1

$7235.2

Explanation:

Given the buying price before adding property tax as $304000 then since property tax accounts for 2.38% of this selling price, it implies that the buyer will part with 102.38% of the given price

The amount of property tax, considering the given selling price which we assume is exclusive of the tax then the tax will be equivalent to
`\frac {2.38\%*\$ 304000}{100\%}=\$7235.2`