Real Estate Math
A North Dakota homeowner's insurance premium is $1,440 per year. At closing, the seller has prepaid the entire annual premium, and the buyer assumes coverage from the closing date (July 1). How much does the buyer owe the seller for the prepaid premium (using a 360-day year)?
A$600
B$660
C$720✓ Correct
D$780
Explanation
Buyer's share: 6 months (July 1 to Dec 31) = 6/12 of year = $1,440 × 6/12 = $720. Using the values given ($1,440), apply the appropriate formula..
Related North Dakota Real Estate Math Questions
- A North Dakota property is described as the NE¼ of the SW¼ of Section 6. How many acres does this description contain?
- A North Dakota duplex generates $800 per month per unit. What is the annual gross income?
- A North Dakota commercial property sold for $1,200,000. The broker charges a 4% commission. How much is the commission?
- A property was assessed at 80% of its $250,000 market value. The mill rate is 30 mills. What is the annual property tax?
- A North Dakota property's annual NOI is $30,000 and the required cap rate is 8%. What is the indicated value?
- How many square feet are in one acre?
- A buyer obtains a $225,000 mortgage at 4.5% annual interest. What is the total annual interest in the first year (approximate, interest-only basis)?
- A North Dakota commercial lease has a base rent of $10,000/month plus a 2% overage on annual gross sales above $1,000,000. If the tenant's annual gross sales are $1,500,000, what is the total annual rent?
Practice More North Dakota Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free North Dakota Quiz →