Tax and Homeowner Exemption The value of residential property for tax purposes is usually much lower than its actual market value. If v is the market value, the assessed value for real estate taxes might be only 40 % of v . Suppose that the property tax, T , in a community is given by the function T = f ( r , v , x ) = r 100 ( 0.40 v − x ) , Where v is the market value of the property(in dollars), x is a homeowner’s exemption (a number of dollars depending on the type of the property), and r is the tax rate (stated in dollars per hundred dollars). Determine the real estate tax on a property valued at $ 200 , 000 with a homeowner’s exemption of $ 5000 , assuming atax rate of $ 2.50 per hundred dollars of net assessed value. Determine the tax due if the rate increased by 20 % to $ 3.00 per hundred dollars of net assessed value. Assume the same property value and homeowner’s exemption. Does the tax due also increase by 20 % ?
Tax and Homeowner Exemption The value of residential property for tax purposes is usually much lower than its actual market value. If v is the market value, the assessed value for real estate taxes might be only 40 % of v . Suppose that the property tax, T , in a community is given by the function T = f ( r , v , x ) = r 100 ( 0.40 v − x ) , Where v is the market value of the property(in dollars), x is a homeowner’s exemption (a number of dollars depending on the type of the property), and r is the tax rate (stated in dollars per hundred dollars). Determine the real estate tax on a property valued at $ 200 , 000 with a homeowner’s exemption of $ 5000 , assuming atax rate of $ 2.50 per hundred dollars of net assessed value. Determine the tax due if the rate increased by 20 % to $ 3.00 per hundred dollars of net assessed value. Assume the same property value and homeowner’s exemption. Does the tax due also increase by 20 % ?
Solution Summary: The author calculates the value of the real estate tax T on a property valued at 200,000 with the homeowner's exemption and the tax rate.
Tax and Homeowner Exemption The value of residential property for tax purposes is usually much lower than its actual market value. If
v
is the market value, the assessed value for real estate taxes might be only
40
%
of
v
. Suppose that the property tax,
T
, in a community is given by the function
T
=
f
(
r
,
v
,
x
)
=
r
100
(
0.40
v
−
x
)
,
Where
v
is the market value of the property(in dollars),
x
is a homeowner’s exemption (a number of dollars depending on the type of the property), and
r
is the tax rate (stated in dollars per hundred dollars).
Determine the real estate tax on a property valued at
$
200
,
000
with a homeowner’s exemption of
$
5000
, assuming atax rate of
$
2.50
per hundred dollars of net assessed value.
Determine the tax due if the rate increased by
20
%
to
$
3.00
per hundred dollars of net assessed value. Assume the same property value and homeowner’s exemption. Does the tax due also increase by
20
%
?
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