Word Problems: Real Estate Tax: Example 1

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Consider a city which has a real estate tax of 1.3% of the assessed value of a piece of property.
The City Assessor calculates the assessed value as 90% of the market value.

In using these percentages we need to convert them to decimals.
Convert 1.3% to a decimal.

Since 1.3% is the same as

, the decimal value is 0.013.

Convert the 90% to a decimal.

These values, 0.013 and 0.90, are to be applied in succession to the market value.
Should the values be added, subtracted, multiplied, or divided?

They should be multiplied.

Describe how they would be applied to calculate the tax on a home having a market value of $200,000.

We need 90% of the 200,000, and then determine 1.3% of that result:

Set up that calculation.

tax = 0.013 * 0.90 * 200,000.

Calculate the amount of the tax.

tax = 0.013 * 0.90 * 200,000 = $2340.

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