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26 February, 17:45

John and Mary Billings own a condominium with an assessed value of $110,000. If the tax rate is 25 mills per $1.00 of assessed valuation, how much tax do they pay? A. $1,420 B. $1,840 C. $1,200 D. $2,750

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  1. 26 February, 17:50
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    option (D) $ 2,750

    Explanation:

    Data provided:

    Assessed value of John and Mary Billings = $ 110,000

    Tax rate = 25 mills per $ 1.00

    or

    Tax rate in dollars = 25/1000 = 0.025 / $ 1.00

    therefore,

    Tax they have to pay = Assessed value of John and Mary Billings * Tax rate

    or

    Tax to be paid = $ 110,000 * 0.025 = $ 2,750

    Hence,

    the correct answer is option (D) $ 2,750
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