Taxes on the property Buyer Alan is purchasing are $3,200 due on December 31. If the closing is set for October 15, using the 365-day method, how much of the taxes will be credited to the buyer? (Assume it is not a leap year and the day of closing belongs to the seller.)
a) The seller's share of $2,533.38
b) The buyer's share of $666.62
c) The seller's share of $2,525.76
d) The buyer's share of $674.24

c) The seller's share of $2,525.76

Explanation:

The computation is shown below:

= Due amount × given number of days ÷ total number of days in a year

where,

Due amount is $3,200

Given number of days is calculated from Jan 1 to October 15 i.e

= 31 days in January + 28 days in February + 31 days in March + 30 days in April + 31 days in May + 30 days in June + 31 days in July + 31 days in August + 30 days in September + 15 days in October

= 288 days

So, the amount is

= $3,200 × 288 days ÷ 365 days

= 2,524.93

i.e 2,525.76

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%