Question 1:
- a) You are purchasing a business building valued at $275,000. You can find a mortgage at 5% if you can put 20% down. You believe your business can support a $1,300 a month mortgage payment (not including taxes and insurance). Should you select a 25 year mortgage or a 30 year mortgage? Tell your reasons.
- b) If your yearly taxes for the building will be $2,600 and the insurance for the building will be $1,600 per year, what will the total of the PITI for the mortgage be?
- c) Compute what the unpaid principal balance will be after youve made three payments on the mortgage.
- d) What will the new annual taxes on the property be if the assessed valuation is 60% of purchase price and the new tax rate is 1.80 per $100 of assessed valuation?
Question 2:
- a) Vonte Canyon, Arizona (a fictitious city) has a new budget of $99,895,000 to pay for police, fire, schools, and government, among other expenses. The total assessed valuation (based on 60% of market value) in the city is $7,899,023,000. Find the tax rate per $1,000 of assessed valuation
- b) Now find the taxes on a property that has an assessed valuation of $190,500.
Question 3:
- a) Find the sales tax of a new above ground pool that you pay $12,500 for if the tax rate in your area is 8.9%.
- b) Find the marked price and tax for an $12 beer at the local football stadium, where the sales tax rate is 9.5%.
Question 4:
Research the excise tax for gasoline for the state of TX. For example, a state may have excise taxes of between $0.283 cents per gallon to $0.363 cents per gallon, depending on the county you purchase your gas in. If the current price for a gallon of gas is $2.76, what percentage of each gallon of gas is the excise tax?
