What is the value of the johnsons home after the change in


A city permanently increases annual mill rates from $10 to $25. It decides to increase the rate from $10 to $15 in the first year, and then from $15 to $25 in the second year. The mill rate will stay at $25 each year after. The Johnsons own a home valued at $500,000 before the change in property tax. Interest rates are 10%. What is the value of the Johnsons’ home after the change in property tax policy under 100% capitalization? Show all calculations.

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