If the total of all assessed values rises by 5% over the current assessment, at what value must next year's mill rate be set?
A) 8.6903
B) 8.2923
C) 7.9923
D) 9.7684
E) 8.3906

Question

Quizplus · Accepted Answer

To maintain the same amount of revenue with a 5% increase in assessed values, the mill rate must decrease proportionally. The formula to calculate the new mill rate is: New Mill Rate = Old Mill Rate / (1 + Percentage Increase). Assuming the old mill rate is 1 (or any constant value since the specific old rate isn't provided), the new mill rate would be 1 / (1 + 0.05) = 1 / 1.05 = 0.9524. This calculation is a conceptual explanation; the correct answer (B) 8.2923, suggests a specific scenario not fully detailed in the question but follows the principle that the mill rate must adjust inversely to the assessment increase to yield the same revenue.

If the Total of All Assessed Values Rises by 5