Real Estate Math

A Washington home's annual taxes are $7,500. The closing date is June 15. Taxes are collected in two installments: April 30 and October 31. The seller paid the first half ($3,750) in April. At closing, the seller owes taxes from May 1 to June 15 (46 days). How much?

A$945
B$946✓ Correct
C$948
D$950

Explanation

Daily rate = $7,500 ÷ 365 = $20.55/day.

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