1. Cell phone use is prohibited.
Students:
Today is a red light day.
Cell phone use is prohibited.
This is your warning.

2. Find the interest, payment to principal, and new balance.
1) Mortgage Amount = $ 85, for 30 years
Interest Rate = 3.5 %
Mortgage Payment = $
Interest =
$ 85, x 3.5 % x ( 1/12 )
= $
Payment to Principal =
$ – $
= $
New Balance =
$ 85, – $
= $ 84,867.68
2) Mortgage Amount = $ 85, for 20 years
Interest Rate = 3.5 %
Mortgage Payment = $
Interest =
$ 85, x 3.5 % x ( 1/12 )
= $
Payment to Principal =
$ – $
= $
New Balance =
$ 85, – $
= $ 84,755.83

3. 16.05
Real Estate Taxes

4. 1) Market Value 2) Rate of Assessment
When you own a home, you will have to pay city or county real estate taxes.
Real estate taxes are used by governments to pay for roads, parks, schools, government offices, and other services.
Real estate taxes are based upon 3 values.
1) Market Value
the price at which a property can be bought or sold.
2) Rate of Assessment
a percent of the property’s market value.

5. Market Value x Rate of Assessment
3) Tax Rate
expressed as mills per dollar of the property’s assessed value
A mill is
When working with mills, convert them into a decimal by dividing by 1000.
Assessed Value
Market Value x Rate of Assessment

6. Assessed Value x Tax Rate
Number of Mills ÷ 1000
Real Estate Tax
Assessed Value x Tax Rate
Market Value
Rate of Assessment
Assessed Value
Tax Rate
Tax Rate as a Decimal
Real Estate Taxes
$ 80,000.00
20 % $
mills
$ 110,000.00
30 %
mills
16,000.00
867.20
33,000.00

7. Find the assessed value, the tax rate, and the real estate tax.
A property has a market value of $ 98, The rate of assessment is 20 %. The tax rate is 57.2 mills.
Find the assessed value, the tax rate, and the real estate tax.
Assessed Value
= $ 98, x 20 %
= $ 19,600.00
Tax Rate
= ÷ 1000 =
Real Estate Tax
= $ 19, x
= $