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6 August, 02:32

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 May 17 (136 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 $1,000 for the entire year. A. $372.60B. $1,000.00C. $182.19D. $624.66

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  1. 6 August, 05:15
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    Option (a) $372.60

    Explanation:

    Data provided in the question:

    Number of days during which the seller occupied the house = 136 days

    Estimated cost for the entire year = $1,000

    Now,

    The period of time during which the seller occupied the house in years

    = Number of days during which the seller occupied the house : Total number of days in a year

    = 136 : 365

    = 0.37260

    Therefore,

    The amount that the buyer will be credited = 0.37260 * $1,000

    = $372.60
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