Brady has purchased a home for $299,000. He made a 20% down payment and financed the remaining amount. The intangible tax is 0.2%. Which of the following is the total amount of the intangible tax?

$478.40

$598.00

$47,840.00

$59,800.00

Question

Brady has purchased a home for $299,000. He made a 20% down payment and financed the remaining amount. The intangible tax is 0.2%. Which of the following is the total amount of the intangible tax?

$478.40

$598.00

$47,840.00

$59,800.00

anonymous · Answer

@NaCl

anonymous · Answer

@Jasmineflvs

anonymous · Answer

@radar

anonymous · Answer

I got 598.00

anonymous · Answer

299,00 x 0.2 = 598.00

anonymous · Answer

I dunno if it right tho check first !

anonymous · Answer

ok, lol i trust you because i am so bad with these problems!!

anonymous · Answer

i tagged you in another, i really need help to finish them

radar · Answer

To convert .2% to a decimal it becomes .002   Now do the multiplication 299,000*0.002
and as @NaCl posted $598.00.  What will they think of to tax??

anonymous · Answer

@NaCl @radar What about the 20% down payment? You have to factor that in.

anonymous · Answer

I just took the test, using the correct answer, and $598.00 was not it. 

Here's an example on how to solve a problem like this: 
Home Price = $319000
Down Payment: 5%
Intangible Tax: 0.2% 

5% --> 5/100 = 0.05
Step 1 (calculate the down payment): 319000 x 0.05 = $15,950. 

Step 2 (subtract down payment from home price): 319000 - 15950 = $303,050

0.2% --> 0.2/100 = 0.002
Step 3 (calculate intangible tax): 0.002 x 303050 = $606.10

Now just follow the same steps but replace the variables with your problem and you'll get the intangible tax.

radar · Answer

I would of thought that the entire price of the house would of been included.  I guess "intangible" tax is different than like sales tax.  A definition of intangible tax should of been included.  I have read several definitions and they all referred to "actual value" and that information was not provided in the problem.

anonymous · Answer

@radar Yeah, it's confusing. That's why it's important to take notes while reading the lesson material, which kenbaby should have done. They gave the formula and steps for it in the lesson, Or at least they did for my class.

radar · Answer

@KatherinePierce1864 Thanks for the clarification. Usually the steps needed are explained in study material or via the lecture.