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Real Estate MathHARDFREE

Annual property taxes are $4,380. The property closes on March 15. If the seller has NOT paid taxes for the current year, how much does the seller owe at closing? (Use 365 days)

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Question & Answer

Review the question and all answer choices

A

$888

Correct Answer
B

$912

C

$876

D

$900

Why is this correct?

Daily rate = $4,380 / 365 = $12/day. Days from Jan 1 to March 15 = 31 + 28 + 15 = 74 days. Seller owes = 74 x $12 = $888.

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