Property taxes in a particular district are 4% of the purchase price of a home every year.

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Property taxes in a particular district are 4% of the purchase price of a home every year. If you just purchased a $250 000 home, what is the present value of all the future property tax payments? Assume that the house remains worth $250 000 forever, property tax rates never change, and a 6% interest rate is used for discounting.

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The Economics Of Money Banking And Financial Markets

ISBN: 978-0134376936

6th Canadian Edition

Authors: Frederic S Mishkin ,Apostolos Serletis

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