The tax rate on Harriet Walker's $80,000 vacation home is 20 mills. The property is assessed at full value. How much will Harriet Walker pay in taxes this year?
A. $640
B. $440
C. $1,600
D. $2,000
"Property tax in dollar terms is calculated by multiplying the assessed property value and the mill rate and dividing by 1,000."
(80,000 * 20)/1000 = ________
http://www.investopedia.com/terms/m/millrate.asp
1600
To calculate the amount Harriet Walker will pay in taxes, we need to multiply the assessed value of the property by the tax rate.
The tax rate is given as 20 mills, which means 20/1000 or 0.02.
The assessed value of the property is $80,000.
So, the amount Harriet Walker will pay in taxes this year is $80,000 * 0.02 = $1,600.
Therefore, the correct answer is C. $1,600.
To determine how much Harriet Walker will pay in taxes for her vacation home, we need to calculate the property tax based on the given information.
First, let's convert the tax rate from mills to a decimal. A mill is equal to 1/1000 of a dollar or 0.001. So, a tax rate of 20 mills is equivalent to 0.020.
Next, we multiply the assessed value of the property by the tax rate to find the amount of taxes owed. The assessed value is given as the full value, which means $80,000.
Tax owed = Assessed value × Tax rate
= $80,000 × 0.020
= $1,600
Therefore, Harriet Walker will pay $1,600 in taxes this year.
The correct answer is C. $1,600.