Real Estate Math

A Colorado property has annual taxes of $4,500. If the property closes on April 1 and taxes are paid in arrears, how much does the seller credit the buyer (based on months)?

A$1,000.00
B$1,125.00✓ Correct
C$1,500.00
D$3,375.00

Explanation

January through March = 3 months. Seller's share = $4,500 × (3/12) = $1,125.

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