On Feb 1, a seller paid $1140 in annual property tax for the current calendar year. He sold the house with the closing set for April 1. What will be the seller's credit for the property taxes already paid if the buyer pays for the day of closing? Use a 360 day year and a 30 day month.
First, calculate the daily property tax amount paid by the seller:
$1140 / 360 days = $3.17 per day
Next, determine the number of days from Feb 1 to April 1:
February has 28 days
March has 31 days
April 1
Total days = 28 + 31 + 1 = 60 days
Now, calculate the credit the seller will receive for property taxes already paid:
60 days x $3.17 per day = $190.20
Therefore, the seller will receive a credit of $190.20 for property taxes already paid by the buyer at closing on April 1.