Question

A school district’s property tax rate rises from 2.5% to 2.7% to cover a $300,000 budget deficit (shortage of money). What is the value of the property in the school district to the nearest dollar? (Note: Property is assessed at 100% of its value.)

Answer 1

A school district’s property tax rate rises from 2.5% to 2.7% to cover a $300,000 budget deficit (shortage of money).

What is the value of the property in the school district to the nearest dollar?

Let x represents the value of the property in the school district.

The increase in property tax rate is

$2.7\%-2.5\%=0.2\%$

0.2% means 0.2/100 = 0.002 (in decimal)

So, we can write the following equation

$0.002x=\ 300,000$

Let us solve the equation for x.

$\begin{gathered} \frac{0.002x}{0.002}=\frac{\ 300,000}{0.002} \\ x=\ 150,000,000 \end{gathered}$

Therefore, the value of the property in the school district (to the nearest dollar) is

$\ 150,000,000$

That is 150 million dollars.