Real Estate Math

A Fargo property's annual property taxes are $3,600. The closing date is September 1. Using a 360-day banker's year and assuming taxes are paid in arrears, how much would the seller owe as a proration credit to the buyer?

A$1,800
B$2,100
C$2,400✓ Correct
D$3,600

Explanation

Taxes accrue from Jan 1. September 1 is month 8 of 12.

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