Suppose that you decide to purchase a property that has annual property taxes of $2,427.22. If the closing occurred on March 13ᵗʰ, calculate your share (Buyer's share) of the total property taxes. For this problem, assume that we are dealing with a 365 day calendar year.
A) $482.26
B) $1990.17
C) $1,996.96
D) $2,479.22

Question

Quizplus · Accepted Answer

To calculate the buyer's share of property taxes, we need to determine how many days of the year the buyer will own the property.

If the closing occurred on March 13th, the buyer would own the property for the remaining 293 days of the year (365-72).

To calculate the buyer's share, we use the proration formula:
(Buyer's share) = (Annual Tax / Total days in the year) x Number of days the buyer will own the property

Plugging in the values, we get:
(Buyer's share) = ($2,427.22 / 365) x 293
(Buyer's share) = $16.18 x 293
(Buyer's share) = $4,743.74

Therefore, the buyer's share of the total property taxes is $1,996.96, which is answer C.

Suppose That You Decide to Purchase a Property That Has