Real Estate Math
A Washington listing has an annual property tax of $7,200 and a homeowner's insurance premium of $1,800/year. A buyer's monthly escrow payment for taxes and insurance alone is:
A$600
B$750✓ Correct
C$900
D$1,050
Explanation
Monthly escrow = (Annual tax + Annual insurance) ÷ 12 = ($7,200 + $1,800) ÷ 12 = $9,000 ÷ 12 = $750. Correct answer is B ($750).
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