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evablogger
2 months ago
8

Kelly bought Mason’s home for $255,500. Mason had prepaid the annual property taxes of $2,650. If closing costs are calculated o

n a 365-day year, and the transaction closes on March 5, how much will Kelly owe Mason for property taxes? Carry numbers out four decimal places, but round to two decimal places for your final answer. The proration is calculated up to the day of closing, meaning that the buyer owns the day of closing. Be sure to include the last day of the year in your calculations.
Mathematics
1 answer:
Svet_ta [12.7K]2 months ago
8 0

Answer:

  $2192.60

Step-by-step explanation:

March 4 marks the 63rd day of the year. Therefore, the tax amount Kelly has to reimburse Mason covers the rest of the days in the year, calculated as 365 - 63 = 302 days.

Kelly will be required to pay Mason...

  (302/365)($2650) = $2192.6027 ≈ $2192.60

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