Real Estate Math
An Iowa property taxes are $4,200/year. The seller lived there for 8 months before closing on September 1. How much does the seller owe the buyer in prorated taxes at closing? (Use a 360-day year.)
A$2,800✓ Correct
B$3,080
C$3,150
D$2,975
Explanation
8 months of taxes = $4,200 × (8/12) = $2,800. Seller owes buyer $2,800 for the accrued but unpaid taxes for the period January–August.
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