Question

A couple bought a rental house for $195,000. Its assessed value was $180,000. If the tax rate is $1.50 per $100 of assessed value, what is the monthly contribution the lender will REQUIRE for taxes? Round to the nearest cent.

Answer 1

Answer:

monthly contribution the lender = $225

Explanation:

given data

couple bought rental house = $195,000

assessed value = $180,000

tax rate = $1.50

to find out

monthly contribution

solution

tax amount = $195,000 ÷ $100  = $1,950 × $1.50

= $2,925

tax amount = $180,000 ÷ $100 = $1,800 × $1.50

= $2,700

monthly contribution the lender = $2,925 - $2,700

monthly contribution the lender = $225