💯 Maths

# The tax rate on Jerome Jame's \$112,000 vacation home is 25 mills. The property is assessed at full value. How much will Jerome pay in taxes this year? A. \$780 B. \$7,800 C. \$2,800 D. \$28,00? Jenit PatelKnowledge is Power86 students helped

Hello, As mention in the question, Tax Rate = 25 mills = 2.5 % (25/1000) Principal Amount = \$112000 Period = Time = 1 year Thus we see this as a mathematical equation in the form of simple interest (SI) SI = (principal amount * tax rate * time) / 100 SI = (112000 * 2.5*1)/100 = \$2800 Hope this helps to get your answer  Verified
Amir SaeiInspiring and engaging mathematics specialist, 5+ to STEP19 students helped

Hello Diana. The Mills rate represents a figure amount per \$1000 of the assessed value of the property (mills is derived from the Latin word "millesium" which means thousandth). The assessed value of the property is \$112,000. The tax rate is 25 mills which means \$25 per \$1000. So the tax due is 25*112=\$2800. Alternatively, one can think of 25 mills as a tax rate of 2.5% (25/1000 = 2.5/100). So now you just need to calculate 2.5% of \$112,000 which is \$2800. I hope this helps. Best wishes, Amir Saei 