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

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

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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?

Experienced

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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

Amir Saei

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Amir Saei