Question

A house is closed on May 15. HOA dues are $108 per month and are due and payable on the first day of each month. The HOA dues will appear on the closing statement as.

Answer 1

The $59 amount is credited to the seller

Step-by-step explanation:

Since in the question, it is given that the HOA dues per month are $108 and the house is closed on May 15. And this HOA dues will pay on the first day.

So, in the given case, the calculation is presented below:

Since the house is closed on May 15 and as we know that in May month there are 31 days so, from May 15 to May 31 there are 17 days

So, for one day, the due is

= $108 ÷ 31 days

= 3.48

And, for 17 days, it will be $59 and the same is to be credited to the seller and debited to the buyer