In Hendricks on Township, houses are assessed at 80% of the purchase price. If Mr. Thomas buys a house in Hendricks on for $120,000 and rea estate taxes are $4.75 per $100 of assessed valuation, how much property tax must he pay per year?

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Multiply the purchase price of the home by the assessment rate to find the assessed value. 120,000 x o.8() = $96,000 (assessed value) Find the number of hundreds in the assessed value. $96,000 - 100 = 960 (hundreds) Multiply the number of hundreds by the tax rate. 960 x $4.75 = $4,560 (property tax)

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