Question: Can you please help with these practice problems: You are tasked with calculating the property tax needed to fund construction and operation of a $22.5

Can you please help with these practice problems:

You are tasked with calculating the property tax needed to fund construction and

operation of a $22.5 million complex. The facility's annual operating budget is forecast at

$3.6 million, to be covered by revenues from programs offered at the facility. A 30-year

general obligation bond with a rate of 5.5% will be issued to pay for the facility's

construction costs. The net assessed value of property in the municipality is $725

million.

1. Calculate the amount that must be set aside each year to meet the bond's principal and

interest obligations over 30 years.

2. Calculate the additional millage required to cover the project's debt service.

3. For an owner of property with a total assessed value of $15,000, by how much will

his/her property tax increase?

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