Linda and Ralph have signed a contract to purchase a home. The closing date is April 27, and the buyer owns the property on the day of closing. The selling price of the home is $782,500. Linda and Ralph obtained a fixed-rate mortgage from a bank for $685,000 at 7.35% interest. The seller has already paid $14,578.15 in property taxes for the coming year. How much will Linda and Ralph owe in prorated expenses?

a) $64,925.65
b) $34,347.06
c) $10,496.82
d) $9,945.06

Question

Linda and Ralph have signed a contract to purchase a home. The closing date is April 27, and the buyer owns the property on the day of closing. The selling price of the home is $782,500. Linda and Ralph obtained a fixed-rate mortgage from a bank for $685,000 at 7.35% interest. The seller has already paid $14,578.15 in property taxes for the coming year. How much will Linda and Ralph owe in prorated expenses?

a) $64,925.65
b) $34,347.06
c) $10,496.82
d) $9,945.06

anonymous · Answer

never mind solved it on my own :) answer is D $9,945.06