Real Estate Math

A Wyoming closing is scheduled for May 15. The seller's mortgage balance is $165,000 and the monthly interest rate is 0.583% (7% annual). What is the per-diem interest for May 15 (assuming 15 days of interest for May)?

A$32.17
B$481.95✓ Correct
C$962.25
D$161.25

Explanation

Daily interest = ($165,000 × 7%) ÷ 365 = $11,550 ÷ 365 = $31.64 per day ≈ $32.

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