Question
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
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 8% interest rate is used for
discounting.
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Intermediate Microeconomics
Authors: Hal R. Varian
8th edition
393934241, 978-0393934243
