Real Estate Math

Property taxes are $4,200 per year. The closing occurs on April 15 (day 105 of the year). Using a 365-day year, how much tax has the seller accrued and must credit the buyer at closing?

A$1,209✓ Correct
B$1,197
C$1,214
D$1,155

Explanation

Daily tax rate = $4,200 ÷ 365 = $11.507/day. Seller owned through April 15 (day 105). Accrued tax = 105 × $11.507 = $1,208.22 ≈ $1,209.

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