Real Estate Math
Property taxes are paid in arrears in Arkansas. A property sells with a closing date of September 30. The annual taxes are $3,600. How much does the seller owe in prorated taxes?
A$2,700✓ Correct
B$2,800
C$1,800
D$2,000
Explanation
Taxes accrue from January 1 to the closing date. Daily rate = $3,600 ÷ 365 = $9.
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