The property tax on a $370,000 home is $15,170. At this rate, what is the property tax on a home appraised at $190,000?
The correct answer and explanation is:
To find the property tax on a home appraised at $190,000, we use the same tax rate that applies to the $370,000 home.
Step-by-step Calculation:
- Determine the tax rate per dollar: Tax Rate=Property TaxAppraised Value=15,170370,000\text{Tax Rate} = \frac{\text{Property Tax}}{\text{Appraised Value}} = \frac{15,170}{370,000} Tax Rate≈0.041\text{Tax Rate} \approx 0.041
- Apply the same rate to the $190,000 home: \text{Tax on $190,000 home} = 190,000 \times 0.041 = 7,790
✅ Final Answer: $7,790
💬 300-Word Explanation:
This problem involves proportional reasoning using a known property tax and appraised value to calculate a similar tax for a different home value at the same tax rate.
The tax rate is calculated by dividing the given tax ($15,170) by the value of the home it applies to ($370,000). This gives us a unit rate, which tells us how much tax is charged per dollar of home value. This rate comes out to approximately 0.041, or 4.1%.
Now that we have this rate, we can apply it to another home with a different appraised value — in this case, a $190,000 home. Multiplying $190,000 by 0.041 gives $7,790, which is the property tax for that home at the same rate.
This kind of proportional approach is widely used in real-life financial contexts such as property tax, interest rates, or sales tax. It ensures fairness by scaling the cost based on the value of the item or asset being taxed.
It’s important to assume the tax rate remains constant. If different properties are taxed at different rates due to location or exemptions, this method wouldn’t apply directly. But when the rate is uniform — as stated in this problem — this method gives a precise and efficient answer.
Thus, the property tax on a $190,000 home, given the same tax rate, is $7,790.