The prorated rent amount is found by calculating the daily rent for each tenant and then multiplying it by the number of days the buyer will own the property in September. Each tenant has a different rent, so the calculations are done separately, and then the totals are summed, which yields an amount close to Option D) $720.50.
To determine the prorated rent that should be allowed to the buyer when the sale closes on September 19, we need to calculate the amount of rent paid by each tenant for the days the seller owned the property and then calculate the amount for the remaining days of the month that will be owned by the buyer.
September has 30 days, so the buyer will own the property for 11 days (from September 19 to September 30), which is the period for which the rent needs to be prorated. The two tenants paying $345 each have paid for a full month, and similarly, the three tenants paying $425 each have also paid for the entire month.
To calculate the daily rent for the tenants, we divide the monthly rent by 30 (number of days in September). For the tenants paying $345:
- Daily rent per tenant: $345 / 30 = $11.50
- Total rent for 11 days (11 * $11.50): $126.50 per tenant
- Total rent for two tenants: 2 * $126.50 = $253
For the tenants paying $425:
- Daily rent per tenant: $425 / 30 = $14.17 (rounded to two decimal places)
- Total rent for 11 days (11 * $14.17): $155.87 per tenant
- Total rent for three tenants: 3 * $155.87 = $467.61
The total prorated amount to be allowed to the buyer is the sum of the prorated rents for all tenants: $253 (from the two tenants) + $467.61 (from the three tenants) = $720.61. Therefore, the closest answer choice is D) $720.50.