Question

e ownership
martins annual homeownership expenses
spreadsheet
martin bought a townhouse in portland, oregon, for $350,000. he is
preparing a detailed budget to understand all the non - mortgage costs
involved in homeownership. martin made a table with a breakdown of his
anticipated monthly expenses. annual expenses are:

• property taxes: 1.25% of the property value annually
• homeowners insurance: $1,800 annually
• maintenance and repairs: 0.75% of the property value budgeted

annually

expense category	monthly cost	annual cost calculation	annual cost
homeowners<br>insurance		flat annual fee	$1,800
hoa fees	$120
utilities (electric<br>& gas)	$300

what is the annual cost of martins property taxes?
$3,750
$5,250
$4,375
$4,500

Explanation:

Step1: Identify the property value and tax rate

The property value is \$350,000 and the tax rate is 1.25% (or 0.0125 in decimal).

Step2: Calculate the annual property tax

Use the formula: Annual Property Tax = Property Value × Tax Rate. So, \$350,000 × 0.0125 = \$4,375.

Answer:

\$4,375