Lucy purchases a house in Ann Arbor for 700,000 at the beginning of this year. At that time, the house had a taxable value to the prior owner of 300,000. Lucy will use this house as a second home for use in the summer and a rental property in the winter. Assume Ann Arbor has a PRE millage rate of 53 and a non PRE millage rate of 76. How much will Lucy pay in property taxes this year?
1) 15,900
2) 18,550
3) 26,600
4) 37,100
5) none of the other answers