Answer:
$907.38
Step-by-step explanation:
We have been given that Mr. Smith's $85,000 condominium is assessed at 35% of value.
First of all, we will find 35% of $85,000 as shown below:
[tex]\frac{35}{100}\times \$85,000[/tex]
[tex]35\times \$850[/tex]
[tex]\$29,750[/tex]
We are also told that the tax rate is $2.70 per $100 of value. Now we will divide $29,750 by 100 as:
[tex]\frac{\$29,750}{\$100}=297.50[/tex]
Since the tax rate is increased by $0.35 per $100 of value, so the new tax rate will be $2.70 plus $0.35.
[tex]\text{New tax rate}=\$3.05[/tex]
[tex]\text{Amount of new tax}=\$3.05\times 297.50[/tex]
[tex]\text{Amount of new tax}=\$907.375[/tex]
[tex]\text{Amount of new tax}\approx \$907.38[/tex]
Therefore, Mr. Smith's new tax will be $907.38.
