Real Estate Math

A Missouri buyer closes on October 1. Annual property taxes are $7,200. If the buyer is responsible from closing forward, what does the buyer owe at closing (4th quarter)?

A$1,800✓ Correct
B$3,600
C$7,200
D$5,400

Explanation

Oct 1 through Dec 31 = 3 months = 1/4 of the year. Buyer's portion = $7,200 × 3/12 = $1,800.

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