A property with market value $35,000 is assessed at 40% of market value. The tax rate is $4 per $100 of assessed value. What is the tax due?

A property with market value $35,000 is assessed at 40% of market value. The tax rate is $4 per $100 of assessed value. What is the tax due?

• A. $560
• B. $420
• C. $700
• D. $600

Answer: (A)

Taxes are calculated on the assessed value, not directly on market value, with the rate expressed as dollars per hundred of assessed value. First find the assessed value: 40% of 35,000 equals 14,000. The tax rate is $4 for each $100 of assessed value, so divide the assessed value by 100 to see how many blocks of 100 there are: 14,000 / 100 = 140. Multiply by the rate: 140 × 4 = 560. Alternatively, this rate is 4% of the assessed value, and 0.04 × 14,000 also equals 560. The tax due is 560.

Taxes are calculated on the assessed value, not directly on market value, with the rate expressed as dollars per hundred of assessed value. First find the assessed value: 40% of 35,000 equals 14,000. The tax rate is $4 for each $100 of assessed value, so divide the assessed value by 100 to see how many blocks of 100 there are: 14,000 / 100 = 140. Multiply by the rate: 140 × 4 = 560. Alternatively, this rate is 4% of the assessed value, and 0.04 × 14,000 also equals 560. The tax due is 560.