   Chapter 18.II, Problem 20RE ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447

#### Solutions

Chapter
Section ### Contemporary Mathematics for Busin...

8th Edition
Robert Brechner + 1 other
ISBN: 9781305585447
Textbook Problem

# BUSINESS DECISION: EARLY PAYMENT, LATE PAYMENTYou own an a townhome with an assessed value of $185,400. The tax rate is$2.20 per $100 of assessed value.a. What is the amount of property tax?b. If the state offers a 4% discount for early payment, how much would the tax bill amount to if you paid early?c. If the state charges a mandatory 3 1 2 % penalty for late payments, how much would the tax bill amount to if you paid late? (a) To determine To calculate: The property tax if the hometown has an assessed value of$185,400 and the tax rate is $2.2 per$100 of the assessed value.

Explanation

Given Information:

The hometown has an assessed value of $185,400 and the tax rate is$2.2 per $100 of the assessed value. Formula used: Property tax can by computed by, property tax = assessed value of property × tax rate If the tax rate is expressed per$100 of assessed value,

Step 1: Determine the number of $100 the assessed value contains by dividing the assessed value by$100.

Number of $100 = Assessed value100 Step 2: Multiply the number of$100 by the tax per $100 to calculate the property tax. property tax = number of$100 × tax per $100 Calculation: Consider the provided data, The hometown has an assessed value of$185,400 and the tax rate is \$2

(b)

To determine

To calculate: How much would the tax bill amount to if paid early, if the state offers a 4% discount for early payment.

(c)

To determine

To calculate: How much would the tax bill amount to if paid late, if the state charges a mandatory 312% penalty for late payment.

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