Question

The insurance charge is $1200/year. If closing is to take place on June 2ⁿᵈ, and insurance coverage began November 30th the year before, calculate the proration for the seller using a calendar year. Assume no leap year

Answer 1

The proration for the seller is $509.95.

Step-by-step explanation:

To calculate the proration for the seller, we need to determine the number of days between November 30th and June 2nd. November has 30 days. December has 31 days.

January, February, March, April, and May each have 31 days. So, the total number of days is:

30 + 31 + 31 + 30 + 31 + 2 = 155 days

Now, we divide the insurance charge of $1200 by 365 days to get the daily proration amount:

$1200 / 365 = $3.29 per day

Finally, we multiply the daily proration amount by the number of days to get the proration for the seller:

$3.29 * 155 = $509.95