To determine how much you should set aside each month to be prepared to pay your property taxes, we'll follow these steps:
1. Determine the value of your home and the property tax rate:
- Home value: [tex]$190,000
- Property tax rate: 1.4% (which is equivalent to 0.014 as a decimal)
2. Calculate the total amount of property tax due:
- Total property tax = Home value × Property tax rate
- Total property tax = $[/tex]190,000 × 0.014
- Total property tax = [tex]$2,660
3. Determine the number of months you have to save:
- Months until taxes are due: 6
4. Calculate the amount to set aside each month:
- Monthly saving = Total property tax / Number of months to save
- Monthly saving = $[/tex]2,660 / 6
- Monthly saving = [tex]$443.3333 (rounded to 4 decimal places but here we will use it fully for simplicity)
Therefore, you need to set aside approximately $[/tex]443.33 each month for the next 6 months to be prepared to pay your property tax bill when it comes due.
