Question

A seller left his above-ground heating oil tank ½ full by the date of closing. The tank takes 500 gallons to fill it completely to the top. The seller paid $1.50 per gallon for the oil. How much money did the buyers credit the seller back at closing for the oil left in the tank?

a) $375
b) $250
c) $125
d) $500

Answer 1

The buyers credited the seller $375 for the half-full tank of heating oil (250 gallons) left at closing, calculated by multiplying 250 gallons by the seller's cost of $1.50 per gallon.

Step-by-step explanation:

The question involves calculating the amount of money the buyers need to credit the seller for the heating oil left in the tank at closing. Since the tank capacity is 500 gallons and the oil is left ½ full, it means there are 250 gallons of oil left in the tank. The seller paid $1.50 per gallon for the oil.

To find out the total value of the oil left in the tank, multiply the number of gallons by the cost per gallon:

Amount of oil left = Tank capacity × ½ = 500 gallons × ½ = 250 gallons

Cost of the oil left = Amount of oil left × Cost per gallon = 250 gallons × $1.50/gallon = $375

Therefore, the buyers credited the seller $375 at closing for the oil left in the tank. The correct answer is option a) $375.