A commercial property is valued at $2.5 million in District O with a tax rate of 1.8% versus a rate of 2.2% in District P. How much higher is the tax in District P annually?
Answer
A
10 dollars comma 000
B
20 dollars comma 000
C
15 dollars comma 000
D
8 dollars comma 000
Explanation
District P’s rate is 2.2% − 1.8% = 0.4% higher. The additional annual tax is 0.004 × $2,500,000 = $10,000, so the correct choice is $10,000.
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