Property taxes in a particular district are 4 of the, Financial Management

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Property taxes in a particular district are 4 of the

Property taxes in a particular district are 4% of the purchase price 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 that a 6% interest rate is used for discounting.

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