Real Estate Math

A Minnesota buyer pays $3,000 in escrow for property taxes on a home bought July 1. The annual tax is $4,800. If the seller owes taxes from January 1 through June 30 (181 days), what is the seller's tax proration?

A$2,378✓ Correct
B$2,400
C$2,160
D$2,460

Explanation

Daily tax rate = $4,800 / 365 = $13.15/day.

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