Chapter 14 - Sellers Cost

If the loan balance is $ 146,784 , the rate is 5 1 / 4 % , the last payment was May 10 and the closing date is June 1 , what is the accrued interest proration assuming the lender uses a 360 day financial calendar year ? A. $ 492.34 B. $ 471.02 C. $ 513.84 D. $ 428.20

A. $ 492.34 ( 146,784 x 5.25 % = 7.706.16 / 360 = 21.41 , 5 / 10-6 / 1 = 23 x 21.41 = 492.34 )

If insurance coverage begins on November 8 , the closing date is May 19 and the annual premium is $ 1,170 , what is the insurance proration ? A. $ 551.34 credit to the seller B. $ 551.34 credit to the buyer C. $ 618.66 debit to seller D. $ 618.66 credit to seller

A. $ 551.34 credit to the seller ( 1,170 / 365 = 3.21 , 12 + 30 + 31 + 31 + 30 + 31 + 7 = 172 x 3.21 = 551.34 )

If the rent is due on February 15 , the closing day is March 1 and the rent amount is $ 1,450 , what is the rent proration ? A. $ 673.21 to buyer B. $ 673.21 to seller C. $ 608.06 to buyer D. $ 608.06 to seller

A. $ 673.21 to buyer ( 3 / 2-3 / 15-13 , 1,450 / 28 = 51.79 x 13 = 673.21 )

The closing date is October 3 and the taxes have been paid . If the annual tax bill is $ 3,175 , what is the tax proration ? A. $ 774.18 credit to seller B. $ 774.18 debit to seller C. $ 2,400.82 debit to seller D. $ 2,400.82 debit to buyer

A. $ 774.18 credit to seller ( 3,175 / 365 = 8.70 , 28 + 30 + 31 = 89 x 8.70 = 774.18 )

If the rent is due on January 1 and the closing day is January 19 , what is the number of days for the rent proration ? A. 12 to buyer B. 13 to buyer C. 14 to buyer D. 15 to buyer

A. 12 to buyer ( 1 / 19-1 / 31-12 )

The closing date is July 10 and the taxes have been paid . What is the number of days for the seller's tax proration ? A. 174 B. 175 C. 176 D. 177

A. 174 ( 21 + 31 + 30 + 31 + 30 + 31 = 174 )

If insurance coverage begins on August 19 and the closing date is February 23 , what is the number of days for the insurance proration ? A. 176 B. 177 C. 178 D. 179

A. 176 ( 5 + 31 + 30 + 31 + 30 + 31 + 18 = 176 )

If the date the payment is due is May 1 and the closing date is May 25 , what is the number of days for the accrued interest proration ? A. 25 B. 26 C. 27 D. 28

A. 25 ( 5 / 1-5 / 25 = 25 )

If the rent is due on April 20 , the closing day is May 15 and the rent amount is $ 1,375 , what is the rent proration ? A. $ 183.33 to seller B. $ 183.33 to buyer ( 5/16 - 5/20 = 4 , 1,375 / 30 = 45.83 x 4 = 183.33 ) C. $ 1,191.67 to seller D. $ 1,191.67 to buyer

B. $ 183.33 to buyer ( 5/16 - 5/20 = 4 , 1,375 / 30 = 45.83 x 4 = 183.33 )

If coverage begins on December 1st , the closing date is August 17th and the annual premium is $ 1,252 , what is the insurance proration ? A. $ 360.16 debit to seller B. $ 360.16 credit to seller C. $ 891.84 credit to seller D. $ 891.84 credit to buyer

B. $ 360.16 credit to seller ( 1,252 / 365 = 3.43 , 14 + 30 + 31 + 30 = 105 x 3.43 = 360.16 )

If the loan balance is $ 162,597 , the rate is 4 1 / 2 % , the last payment is July 27 and the closing date is August 15 , what is the accrued interest proration assuming the lender uses a 360 day financial calendar year ? A. $ 365.76 B. $ 406.49 C. $ 386.08 D. $ 426.72

B. $ 406.49 ( 162,597 x 4.5 % = 7,316.87 / 360 = 20.32 , 7 / 27-8 / 15-20 x 20.32 = 406.49 )

If insurance coverage begins on October 1 and the closing date is June 5 , what is the number of days for the insurance proration ? A. 116 B. 117 C. 118 D. 119

B. 117 ( 25 + 31 + 31 + 30 = 117 )

The closing date is May 12 and the taxes have not been paid . What is the number of days for the seller's tax proration ? A. 131 B. 132 C. 133 D. 134

B. 132 ( 31 + 28 + 31 + 30 + 12 = 132 )

If the rent is due on July 15 and the closing day is August 7 , what is the number of days for the rent proration ? A. 6 to buyer B. 7 to buyer C. 8 to buyer D. 9 to buyers

B. 7 to buyer ( 8 / 8-8 / 14=7 )

If coverage begins on August 19 , the closing date is June 8 and the annual premium is $ 1,066 , what is the insurance proration ? A. $ 858.64 credit to seller B. $ 858.64 debit to seller C. $ 207.36 credit to seller D. $ 207.36 debit to seller

C. $ 207.36 credit to seller ( 1,066 / 365 = 2.92 , 22 + 31 + 18 = 71 x 2.92 = 207-36 )

If the rent is due on June 1 , the closing day is June 22 and the rent amount is $ 1,500 , what is the rent proration ? A. $ 350 to buyer B. $ 350 to seller C. $ 400 to buyer D. $ 400 to seller

C. $ 400 to buyer ( 6 / 23-7 / 18 , 1,500 / 30 = 50.00 x 8 = 400.00 )

The closing date is April 28 and the taxes have not been paid . If the annual tax bill is $ 1,600 , what is the tax proration ? A. $ 1,082.74 debit to seller B. $ 1,082.74 debit to buyer C. $ 517.26 debit to seller D. $ 517.26 credit to seller

C. $ 517.26 debit to seller ( 1,600 / 365 = 4.38 , 31 + 28 + 31 + 28 = 118 x 4.38 = 517.26 )

If the loan balance is $ 237,640 the rate is 6 % , the last payment was April 1 and the closing date is April 25 , what is the accrued interest proration assuming the lender uses a 360 day financial calendar year ? A. $ 1,069.47 B. $ 950.64 C. $ 990.17 D. $ 1,029.86

C. $ 990.17 ( 237,640 x 6 % = 14,258.40 / 360 = 39.61 , 4 / 1-4 / 25 = 25 x 39.61 = 990.17 )

If the rent is due on May 10 and the closing day is May 21 , what is the number of days for the rent proration ? A. 17 to buyer B. 18 to buyer C. 19 to buyer D. 20 to buyer

C. 19 to buyer ( 5 / 22-5 / 31 = 9 , 6 / 1-6 / 10 = 10 + 9 )

If insurance coverage begins on June 10 and the closing date is April 4 , what is the number of days for the insurance proration ? A. 64 B. 65 C. 66 D. 67

C. 66 ( 26 + 31 + 9 = 66 )

rodman The closing date is March 4 and the taxes have not been paid . If the annual tax bill is $ 2,750 , what is the tax proration ? A. $ 474.66 credit to seller B. $ 474.66 debit to seller C. $ 2275.34 debit to seller D. $ 2275.34 debit to buyer

D. $ 2275.34 debit to buyer ( 2,750 / 365 = 7.53 , 31 + 28 + 4 = 63 x 7.53 = 474.66 )

If the rent is due on October 10 , the closing date is October 31 and the rent amount is $ 980 , what is the rent proration ? A. $ 316.10 to buyer B. $ 316.10 to seller C. $ 284.52 to seller D. $ 284.52 to buyer

D. $ 284.52 to buyer ( 11/1 - 11/10 = 9 , 980 / 31 = 31.61 x 9 = 284.52 )

If coverage begins on October 4 , the closing date is March 23 and the annual premium is $ 1,008 , what is the insurance proration ? A. $ 472.24 debit to seller B. $ 472.24 credit to seller C. $ 535.76 debit to seller D. $ 535.76 credit to seller

D. $ 535.76 credit to seller ( 1,008 / 365 = 2.76 , 8 + 30 + 31 + 30 + 31 + 31 + 30 + 3 = 194 x 2.76 = 535.76 )

The closing date is May 12 and the taxes have not been paid . If the annual tax bill is $ 1,714 , what is the tax proration ? A. $ 1,094.14 credit to seller B. $ 1,094.14 debit to buyer C. $ 619.86 credit to seller D. $ 619.86 debit to seller

D. $ 619.86 debit to seller ( 1,714 / 365 = 4.70 , 31 + 28 + 31 + 30 + 12 = 132 x 4.70 = 619.86 )

If the loan balance is $ 229,165 , the rate is 5 1 / 4 % , the last payment was September 9 and the closing date is October 2 , what is the accrued interest proration assuming the lender uses a 365 day financial calendar year ? A. $ 802.08 B. $ 835.50 C. $ 758.08 D. $ 791.09

D. $ 791.09 ( 229,165 x 5.25 % = 12,031.16 / 365 = 32.96 , 9 / 9-10 / 2 = 24 x 33.42 = 791.09 )

If the rent is due on September 30 and the closing day is October 17 , what is the number of days for the rent proration ? A. 9 to buyer B. 10 to buyer C. 11 to buyer D. 12 to buyer

D. 12 to buyer ( 10/18 - 10/30 = 12 )

If the date the payment is due is April 1 and the closing date is April 16 , what is the number of days for the accrued interest proration ? A. 13 B. 14 C. 15 D. 16

D. 16 ( 4 / 1-4 / 16 = 16 )

If insurance coverage begins on December 7 and the closing date is October 12 , what is the number of days for the insurance proration ? A. 52 B. 53 C. 54 D. 55

D. 55 ( 19 + 30 + 6 = 55 )