86. A house sells for $200000; buyer puts 20% down and finances 80%. Assessed value is $214000 and the tax rate is 3%. Annual property tax is
Answer: C
The annual property tax is $6,420.
The annual property tax is calculated by multiplying the assessed value of the house by the tax rate. In this case, with an assessed value of $214,000 and a tax rate of 3%, the annual property tax amounts to $6,420.
A) $6,000
This option is incorrect as it results from an erroneous calculation. If one were to miscalculate the tax rate or the assessed value, they might arrive at this figure, but it does not reflect the correct multiplication of $214,000 by 3%.
B) $4,800
This option is also incorrect. It suggests a lower property tax amount, which might arise from an incorrect assessment of the property value or tax rate. The accurate calculation clearly shows that $4,800 does not match the product of the assessed value and tax rate.
C) $6,420
This is the correct answer. The annual property tax is calculated as 3% of the assessed value of $214,000, which equals $6,420. This aligns perfectly with the required formula for calculating property taxes.
D) $6,510
This option is incorrect as it slightly overestimates the annual property tax. Such a figure could stem from a misunderstanding of the tax rate or an incorrect assessment of the property's value. The correct calculation distinctly leads to a lower amount.
Conclusion
The correct answer of $6,420 accurately reflects the annual property tax based on the assessed value and tax rate provided in the question. All other options either miscalculate the figures or misinterpret the tax rate, failing to arrive at the correct total. Thus, option C is definitively the right choice.