7)The market value assessment of a home is P = $400,000. The property tax rate is t=0.50% and the interest rate is i=4%. The home is occupied by the owners.

1.The implicit rent generated by this property is $ per month. (It is necessary to show your calculations in the space provided to receive marks for this question.)

2.An increase in the property tax assessment of 2% will cause the house price to change. The new value of the house will be P =$. (It is necessary to show your calculations in the space provided to receive marks for this question.)

3.If the government's budget increased by 5% and the assessed value of homes rose by 2%, then the property tax rate would have to rise tot= %. (It is necessary to show your calculations in the space provided to receive marks for this question.)

4.If the property tax were eliminated, the price of the home would be $ . (It is necessary to show your calculations in the space provided to receive marks for this question.)