Question

If the daily rate is $1.23 and closing is August 31, what will the seller owe at closing? Assume a statutory year and that the seller hasn’t made any payments. Round to the nearest cent.

a) $449.37
b) $450.61
c) $451.84
d) $453.08

Answer 1

To find what the seller owes at closing, multiply the daily rate of $1.23 by the number of days from the start of the year until August 31, which is 242 days. This results in a total of $297.66, rounded to the nearest cent.

Step-by-step explanation:

To determine what the seller owes at closing, we need to calculate the total amount based on the daily rate times the number of days up to the closing date. Since we are using a statutory year, which is 360 days, let's find the number of days from the beginning of the year until August 31.

The number of days in each month are as follows: January (31 days), February (28 days), March (31 days), April (30 days), May (31 days), June (30 days), July (31 days), and August (31 days). Adding those together, we get 242 days. Now, multiply the daily rate of $1.23 by the number of days (242) to find the total amount. $1.23/day × 242 days = $297.66

This amount is rounded to the nearest cent as requested. So, the seller would owe $297.66 at closing.