Answer :
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.
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.
