Real Estate Math

A Florida seller pays off a mortgage with a remaining balance of $175,000. The mortgage carries an interest rate of 5.4% annual rate. If the closing occurs on August 15 and the last payment was August 1, how many days of interest must the seller pay at closing?

A14 days✓ Correct
B15 days
C16 days
D30 days

Explanation

Mortgage interest is paid in arrears. The August 1 payment covered July's interest.

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