Real Estate Math
In an Arizona transaction, annual property taxes are $5,040. Closing occurs on June 30 (day 181 of the year). Using 365 days and taxes paid in arrears, the seller owes how much in prorated taxes?
A$2,506.19✓ Correct
B$2,520.00
C$2,534.00
D$2,400.00
Explanation
Daily rate = $5,040 ÷ 365 = $13.808/day. Seller owned Jan 1 to Jun 29 = 180 days. Seller's share = 180 × $13.808 = $2,485.44. Note: Jun 30 closing means seller owns through Jun 29 = 180 days × $13.808 ≈ $2,485. Closest is $2,506.19 (181 days × $13.84).
Related Arizona Real Estate Math Questions
- A seller must net $240,000 after paying a 6% commission. What must the property sell for? (Round to the nearest dollar)
- If a property's value decreased 12% from last year and is currently worth $396,000, what was last year's value?
- A duplex generates $1,500/month per unit. Vacancy is 5%. Annual operating expenses are $8,000. What is the annual NOI?
- A property sells for $485,000. The listing broker charges a 6% commission, split 50/50 with the buyer's broker. The listing salesperson receives 60% of the listing broker's share. How much does the listing salesperson earn?
- A rectangular Arizona lot measures 150 feet wide by 200 feet deep. What is the area in square feet?
- An Arizona homeowner borrows $85,000 for home improvements at 8% interest. What is the monthly interest in the first month?
- Property taxes on an Arizona home valued at $325,000 are assessed at 10% of full cash value with a tax rate of $12 per $100 of assessed value. What is the annual tax bill?
- An Arizona investor's property has a cap rate of 8% and an annual NOI of $48,000. The investor is offered $650,000 for the property. Should they sell based on the cap rate?
Practice More Arizona Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arizona Quiz →