Real Estate Math
An Arizona escrow requires the seller to prorate property taxes. The annual tax is $3,600. The closing is on April 30. How much does the seller owe for taxes (January 1 through April 30 = 120 days)? Use a 360-day year.
A$1,200✓ Correct
B$900
C$1,500
D$300
Explanation
Daily tax = $3,600 / 360 = $10/day. Seller's share = 120 days × $10 = $1,200. Using the values given ($3,600), apply the appropriate formula.. The correct answer is $1,200.. This is a common calculation on the Arizona real estate exam.
Related Arizona Real Estate Math Questions
- A property's assessed value is $225,000 and the property tax rate is 1.2%. What are the annual property taxes?
- An Arizona rental property generates $2,400 per month in rent. The gross rent multiplier (GRM) for comparable properties is 135. What is the estimated value?
- An Arizona homeowner wants to net $280,000 after paying a 6% commission. What is the minimum sale price needed?
- A property has a NOI of $60,000. A buyer wants a 7.5% return. What is the maximum price the buyer should pay?
- A broker sold a property for $525,000 and received a 5.5% commission. The broker splits 50% with the cooperating broker, who then pays their salesperson 60%. How much does the cooperating salesperson earn?
- An Arizona property sold for $350,000. The total commission rate is 6%. The listing broker and buyer's broker split the commission 50/50. How much does each broker receive?
- An Arizona property has a market value of $475,000. It is assessed at 10% of market value, and the tax rate is $9.20 per $100 of assessed value. What is the annual property tax?
- A home was purchased 4 years ago for $280,000. It has appreciated 5% per year using simple appreciation. What is the current value?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →