Real Estate Math

A Wyoming property closes on March 15. Annual property taxes are $4,800. Using a 360-day year, how much does the seller owe in property tax proration at closing?

A$480
B$1,000✓ Correct
C$3,660
D$4,800

Explanation

Using a 360-day year (30 days per month): Jan(30) + Feb(30) + 15 days of March = 75 days. Daily tax rate = $4,800 / 360 = $13.

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