Question

Lacey and Rick have signed a contract to purchase a home. The closing date is June 27, and the buyer owns the property on the day of closing. The selling price of the home is $812,500. Lacey and Rick obtained a fixed-rate mortgage from a bank for $675,000 at 7.45% interest. The seller has already paid $14,878.15 in property taxes for the coming year. How much will Lacey and Rick owe in prorated expenses?

Answer 1

Answer:

Lacey and Rick will owe $ 7662.88  in prorated expenses

Step-by-step explanation:

The number of days till june 27 us

Jan 31 +  Feb 28   + March 31  + April 30  +  May 31  + June 26 =177 days

In a year we have 365 days

The owner has paid tax for 177 days

Now  Lacey and Rick have to pay tax for  =365 -177 days  = 188 days

Now  for one day tax amount will be

=$\frac{14,878.15}{365}$

= 40.76

Now the tax amount for 188 days is

= $40.76 \times 188$

= 7662.88