50. What will the buyer pay for one year's property taxes if the tax rate is 4%?
Answer: C
The buyer will pay $10,640 for one year's property taxes.
The property tax amount is calculated by applying the tax rate of 4% to the assessed value of the property. In this case, the assessed value must be $266,000, as 4% of that value equals $10,640.
A) $10,000
This option indicates a tax payment that would correspond to a property value of $250,000, calculated as 4% of that amount. Therefore, this option is incorrect as it underestimates the property tax due.
B) $8,000
This option suggests a property value of $200,000, as 4% of that figure results in $8,000. This is inaccurate and significantly lower than the correct tax amount.
C) $10,640
This amount represents the correct computation of property taxes based on a property value of $266,000. By applying the tax rate of 4%, the calculation yields exactly $10,640, making this the correct option.
D) $10,440
This option corresponds to a property value of $261,000, calculated as 4% of that amount. While close, it does not match the required tax amount, rendering it incorrect.
Conclusion
The correct answer, $10,640, accurately reflects the property tax due based on a 4% tax rate applied to a property value of $266,000. All other options fail to align with this calculation, either by overestimating or underestimating the property value, leading to incorrect tax amounts.