Mr.Smith's tax on his house for 1965 was $283.79.If the tax rate for that year was $3.835 per $100 of assessed valuation, for what amount was Mr.Smith's house assessed?
a. $10.88
b. $74
c. $740
d. $1088.33
e. $7400
please answer and explain
(3.835/100.00)v = 283.79
v = 7400.00
wow - cheap house!
To find the assessed value of Mr. Smith's house, we can use the formula:
Assessed Value = Tax Amount / Tax Rate
First, let's convert the tax rate from dollars per $100 to dollars per $1 of assessed valuation:
Tax Rate = $3.835 / $100 = $0.03835 per $1
Next, we can substitute the given values into the formula:
Assessed Value = $283.79 / $0.03835
Calculating this using a calculator:
Assessed Value ≈ $7386.42
Therefore, Mr. Smith's house was assessed at approximately $7386.42.
Comparing this result with the answer choices, we see that the closest value is $7400 (option e), which is the correct answer.