# 3.1a Slide 1 Example 1 Beth’s parents own a home worth \$200,000. The assessed value of the home according to the County Assessor is \$125,000. While Beth’s.

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3.1a Slide 1 Example 1 Beth’s parents own a home worth \$200,000. The assessed value of the home according to the County Assessor is \$125,000. While Beth’s parents could sell the home for \$200,000, they only have to pay property taxes on \$125,000. The annual property tax rate in Beth’s county is 1.2%. Use this information to answer the questions below. a.What percent of the market value is the assessed value of the home? x = % Equation: Assessed Value = x% (market Value) 125,000 = x (200,000) 125,000 ÷ 200,000 = x (200,000) ÷ 200,000 divide both sides by 200,000.625 = x Change the decimal to a percent by multiplying by 100 62.5% ANSWER: The assessed value is 62.5% of the market value. b.What is the annual property tax on the home? Equation: Property Tax = tax rate ( assessed value) Tax rate = 1.2% =.012 (covert the % to a decimal for the equation) Assessed Value = \$125,000 Property Tax =.012 (125,000) Property Tax = \$1,500 ANSWER: The annual Property Tax is \$1,500

3.1a Slide 2 Example 2 Christy has a house with a market value of \$275,000 and an assessed value of \$230,000. The annual property tax rate is \$17 per \$1,000 of assed value. Use this information to answer the questions below. a. What is the annual property tax on the home? Equation: Property Tax = Assessed value ÷ 1,000 tax rate per 1,000 = 230,000 ÷ 1,000 17 = \$3,910 ANSWER: The annual Property Tax is \$3,910 b.If she pays her property taxes monthly, how much does she pay per month? Round to the nearest cent. Equation: Monthly Payment = Annual Property Tax ÷ 12 = \$3,912 ÷ 12 = \$326.00 ANSWER: The monthly payment is \$326.00.

3.1a Slide 3 Example 3 Mr. and Mrs. Morgan are considering purchasing a house with a market value of \$250,000. The assessed value of the house is 58% of the market value and the property tax rate is 1.45% of the assed value. Use this information to answer the questions below a.What is the assessed value of the house? EQUATION: Assessed value = % (Market Value) 58%=.58 Change the percent to a decimal by dividing by 100 to put it in the equation Assessed Value =.58 (250,000) Assessed Value = \$145,000 ANSWER: The assessed value is \$145,000 b.What is the annual property tax on the home? Equation: Property Tax = tax rate ( assessed value) Tax rate = 1.45% =.0145 (covert the % to a decimal for the equation) Property Tax =.0145 (145,000) Property Tax = \$2,102.50 ANSWER: The Annual property tax is \$2,102.50

2.2d Slide 4 Example 4 Spencer’s owns a home with an assessed value of \$110,000 and a market value of \$190,000. The tax rate is 1.38% of the assessed value. His taxes are paid by his mortgage lender, so the property is included in his monthly mortgage payment. Use this information to answer the questions below. a.What is the annual property tax on the home? Equation: Property Tax = tax rate ( assessed value) Tax rate = 1.38% =.0138 (covert the % to a decimal for the equation) Property Tax =.0138 (110,000) Property Tax = \$1.518 ANSWER: The Annual property tax is \$1,518.00 b.How much is he paying for his property tax per month? Equation: Monthly Payment = Annual Property Tax ÷ 12 = \$1,518 ÷ 12 = \$126.50 ANSWER: The monthly payment is \$126.50 c. What percent of his mortgage payment is his property tax if his mortgage payment is \$1,050 per month? Answer the question: \$126.50 is what percent of \$1,050? Let x = percent Equation: 126.50 = x (1050) 126.50 ÷ 1050 = 1050x ÷ 1050 divide both sides by 1050 0.12047 = x Change it to a percent by multiplying by 100 12 % ANSWER: The Property tax is 12% of his monthly mortgage payment.

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