Real Estate Math
A Washington seller's annual property taxes are $9,120 and the closing occurs on October 1. Taxes are paid in arrears. Seller owes for Jan 1 to Oct 1 (273 days). Using the 365-day method:
A$6,720
B$6,822✓ Correct
C$6,840
D$7,200
Explanation
Daily tax = $9,120 ÷ 365 = $24.986/day. Seller owes 273 days × $24.986 = $6,821.18 ≈ $6,822. Using the values given ($9,120), apply the appropriate formula.. The correct answer is $6,822.. This is a common calculation on the Washington real estate exam.
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