A company has a property tax bill for $6,000 this year. It expects property values to rise by 8% each year and therefore increase the property tax bill by 8% each year. What is the expected amount of property taxes the company will pay for this year and the upcoming three years?

$24,080

$24,480

$27,037

$29,200

Question

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Mathematics

8 May, 23:49

A company has a property tax bill for $6,000 this year. It expects property values to rise by 8% each year and therefore increase the property tax bill by 8% each year. What is the expected amount of property taxes the company will pay for this year and the upcoming three years?

$24,080

$24,480

$27,037

$29,200

+1

Answers (1)

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Andres Pineda · Answer 1

Year

1 6,000 x 1.08 = 6,480

2 6,480 x 1.08 = 6,998.40

3 6,998.40 x 1.08 = 7,558.27

4 7,558.27 x 1.08 = 8,162.93

total: 29,199.60

Answer is the last option: $29,200