Real Estate Math
A buyer closes on April 1. Annual real estate taxes of $8,400 have not been paid for the year. Using a 360-day (banker's) year, how much is the seller's proration?
A$2,040
B$2,100✓ Correct
C$2,800
D$3,500
Explanation
Taxes accrue from Jan 1 to March 31 = 3 months. Monthly = $8,400 / 12 = $700. Seller owes 3 months x $700 = $2,100.
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