Question

Certain closing costs will be prorated to account for the period of time during which the seller occupied the house. If a transaction is scheduled to close on September 21 (236 days into a 365-day year), calculate the amount that the buyer will be credited if the particular closing cost in question is estimated to be $1,569 for the entire year

Answer 1

Amount will be credit = $1,014.47

Step-by-step explanation:

Given:

Closing cost = $1,569

Total number of days work = 236 days

Total number of days in year = 365 days

Find:

Amount will be credit.

Computation:

Amount will be credit = Closing cost × [236 / 365]

Amount will be credit = $1,569 × [236 / 365]

Amount will be credit = $1,014.47