The property tax on real property was 10 560 when the assess

The property tax on real property was $10, 560 when the assessed value was $800,000. During the succeeding year, the tax rate increased by $0.10 per $100 and the property tax amounted to $11, 644. Determine the amount of increase in assessed value.

Solution

Amount of Tax in Previous Year with the increase inTax = $10,560 + 0.10/100 * 800,000 = $11360

Amount assessed value for this year = Amount assessed previous year * Tax this year/Tax previous year with increase in tax

=> $800000 * 11644/11360

=> $820000

Amount of increased in assessed value = $820000 - $800000 = $20000