the taxes on a house are $1,260 per year. the taxes are due on january 1 and are paid by the owner. what…

the taxes on a house are $1,260 per year. the taxes are due on january 1 and are paid by the owner. what refund would the owner be entitled to if he sold the house and the taxes were prorated as of september 15? (assume 30 - day months, 360 - day years and the buyer pays for settlement date.) select one: a. $252.00 b. $371.00 c. $267.50 d. $367.50

the taxes on a house are $1,260 per year. the taxes are due on january 1 and are paid by the owner. what refund would the owner be entitled to if he sold the house and the taxes were prorated as of september 15? (assume 30 - day months, 360 - day years and the buyer pays for settlement date.) select one: a. $252.00 b. $371.00 c. $267.50 d. $367.50

Answer

Explanation:

Step1: Calculate number of days from Sep 15 to Dec 31

From September 15 to September 30, there are $30 - 15=15$ days. In October, there are 30 days, in November 30 days and in December 31 days. So total days $d=15 + 30+30 + 31=106$ days.

Step2: Calculate daily tax rate

The annual tax is $T = 1260$. The daily - tax rate $r=\frac{1260}{360}=3.5$ dollars per day.

Step3: Calculate the tax refund

The tax refund $R=r\times d$. Substitute $r = 3.5$ and $d = 106$ into the formula, we get $R=3.5\times106 = 371$ dollars.

Answer:

b. $371.00