Real Estate MathQuestion 109 of 120

Annual property taxes are $3,600. Using a 360-day year, what is the daily proration amount?

a.$10.00
b.$100.00
c.$1.00
d.$30.00

Explanation

Using a 360-day year, divide annual taxes by 360: $3,600 / 360 = $10.00 per day. Prorations allocate expenses like taxes between buyer and seller at closing. Many closings use a 360-day (banker's) year for simplicity.

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