Real Estate Math

A Missouri property closes on July 15. Annual property taxes are $6,000. The seller owes taxes through closing. How much does the seller owe (using 30-day months)?

A$3,000
B$3,450
C$3,250✓ Correct
D$3,750

Explanation

Jan through Jul 15 = 6.5 months. Seller's share = $6,000 × (6.5/12) = $6,000 × 0.5417 = $3,250. Using 30-day months: 6 months + 15 days = 6.5 months. $6,000/12 × 6.5 = $3,250.

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