Ask Question
17 February, 22:07

Mr. Brown owned a house a house, which he rented for $60 a month. The house was assessed for $9000. In 1975 the rate of taxation was increased from $25 to $28 per $1000 assessed valuation. By what amount should the monthly rent have been raised to absorb the increase in that year's taxes?

+4
Answers (1)
  1. 18 February, 00:36
    0
    We first calculate the percentage increase on the tax

    Old value = 25*9 = 225 ⇒ The value 9 represents the 9 lots of thousands of the house's value

    New value = 28*9 = 252

    Increase in tax = 252 - 225 = 27

    Percentage increase = (27:225) * 100 = 12%

    The amount of yearly rent would be then increased by 12%

    Monthly rent = $60

    Yearly rent = 60*12 = $720

    Increase by 12% = 720*1.12 = 806.4 ⇒ The value 1.12 is the multiplier, obtained from 100%+12%=112%=1.12

    The monthly rent is 806.4:12 = $67.20 which is an increase of $7.20 per month
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Mr. Brown owned a house a house, which he rented for $60 a month. The house was assessed for $9000. In 1975 the rate of taxation was ...” in 📘 Mathematics if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers