Real Estate Math

An Iowa property is sold. The closing is on October 15. Taxes for the year are $3,600. How much does the seller owe the buyer in prorated taxes? (Use 365 days.)

A$2,490
B$2,730
C$2,880✓ Correct
D$2,800

Explanation

Days January 1 through October 15: 31+28+31+30+31+30+31+31+30+15 = 288 days. Seller's share = $3,600 × (288/365) = $3,600 × 0.7890 = $2,840.55. Closest: $2,760 (using 360-day year: 288/360 × $3,600 = $2,880). Let's use 365: $2,840.

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