Ms Perez owns 2 properties in different towns. The 1st property is assessed at $125,000 and has a tax rate of $6.35 per 1000 dollars. The 2nd property has the same assessed value, but is taxed at the rate of $0.00587 per dollar. Derive the solution to the total tax obligation and explain how you arrived at it.

Question

Ms Perez owns 2 properties in different towns.  The 1st property is assessed at $125,000 and has a tax rate of $6.35 per 1000 dollars.   The 2nd property has the same assessed value, but is taxed at the rate of $0.00587 per dollar.  Derive the solution to the total tax obligation and explain how you arrived at it.

Henry · Answer

Tax=$125000*($6.35/$1000) + $125000($0.00587/$1.00) = 793.75 + 733.75=$ = $1527.50