The assessed value of Patty's residential property was $200,000 in 2004. In 2006, the assessed value increased to $225,000. The property tax rate in both years was 1.2 percent. Patty earned $60,000 each year.
a) Determine Patty’s property taxes for 2004 by calculating 1.2 percent of $200,000 (multiply by 0.012), and then determine her taxes for 2006 by calculating 1.2 percent of $225,000. Subtract the 2004 tax figure from the 2006 amount. How much more did Patty have to pay for her property tax in 2006 than in 2004?
To determine Patty's property taxes for 2004, we need to calculate 1.2 percent of $200,000.
Step 1: Multiply $200,000 by 0.012 (which is 1.2 percent as a decimal).
200,000 * 0.012 = $2,400 (Property taxes for 2004)
Next, we need to calculate the property taxes for 2006.
Step 2: Multiply $225,000 by 0.012 (1.2 percent as a decimal).
225,000 * 0.012 = $2,700 (Property taxes for 2006)
Now we can find out how much more Patty had to pay for her property taxes in 2006 than in 2004.
Step 3: Subtract the tax figure for 2004 ($2,400) from the tax figure for 2006 ($2,700).
2,700 - 2,400 = $300
Therefore, Patty had to pay $300 more for her property taxes in 2006 than in 2004.