If a home is valued at $250,000 and the property tax rate is 2 percent, how much will the owners pay in property taxes?
Answer
A
$50
B
$500
C
$5,000
D
$50,000
Explanation
Convert 2 percent to 0.02, then multiply the home’s value by the tax rate: $250,000 × 0.02 = $5,000. The owners will pay $5,000 in property taxes, which is choice C.
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