51. A property has a market value of $75,000 and is assessed at 20% of value. The tax rate is $6.50 per $100 of value. What are the real estate taxes for this property?
Answer: B
The real estate taxes for this property are $975.
To determine the real estate taxes, first calculate the assessed value of the property, which is 20% of the market value of $75,000. This results in an assessed value of $15,000. Next, using the tax rate of $6.50 per $100 of value, the taxes can be calculated as follows: ($15,000 / 100) * $6.50 = $975.
A) $487
This option is incorrect as it miscalculates the taxes based on an incorrect assessed value or tax rate application. The calculated taxes based on the assessed value of $15,000 and the tax rate provided do not support this figure.
B) $975
This is the correct option, as it accurately reflects the calculation of real estate taxes. Using the assessed value of $15,000 and the given tax rate of $6.50 per $100, one arrives at the correct tax amount of $975.
C) $1,500
This option is also incorrect. It suggests a much higher tax amount that does not correspond to the assessment and tax rate provided. The calculations clearly indicate that the taxes should be $975 instead of $1,500.
D) $4,875
This option is incorrect as it represents an exaggerated tax amount that is not supported by the assessment calculations. The taxes calculated from the correct assessed value and tax rate do not yield this figure.
Conclusion
The correct answer is $975, as it directly results from applying the property’s assessed value of $15,000 to the tax rate of $6.50 per $100. All other options demonstrate miscalculations or misunderstandings of the assessment and tax rate, failing to yield the correct tax liability for the property.