Lesson 12 section 3 multiple choice quiz

The annual property taxes are $2,340. Based on a 360-day year, what are the per diem taxes?

$6.50

The seller has paid her annual taxes of $4,212 through December 31 of the previous year. If the sale closes on the 20th of March, how will the taxes appear on the settlement statements? Base your prorations on a 360-day year. The buyer is responsible for the taxes on the day of closing.

$924.30 debit for the seller, $924.30 credit for the buyer

The homeowners association dues are $44.50 a month, and they have been paid for the current month, which is January. If the transaction closes on the 14th of January, and the buyer is responsible for the day of closing, how much will be credited back to the seller at closing? Base your computations on a 365-day year.

$25.84.

The seller's loan balance at closing is $84,450. The loan's interest rate is 7-1/2%. If the sale is completed on the 19th of March, how much prorated interest will the seller be charged at closing? Base your prorations on a 365-day calendar year. The seller will be charged for the day of closing.

$329.70.

A buyer obtains a new purchase money loan in the amount of $185,000, with an annual interest rate of 8%. If the sale closes on the 22nd of the month, how much prepaid interest will the buyer be charged at closing? Base your prorations on a 360-day year.

$370.00.