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12 Cards in this Set
- Front
- Back
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30*12= |
360 days. G1210.7 |
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How many days are in a month using the 12 month/30 day proration technique? |
30 days. G1210.7 |
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Using 360/30 proration, how many days are in a year? |
360. G1210.7 |
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360/30 is used for ___________ expenses. |
annualized expenses, such as insurance. G1210.7 |
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How do you calculate Average monthly rate in 360/30? |
annual rate/12= ave. monthly rate. G1210.7 |
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How do you calculate ave. daily rate in 360/30 proration? |
ave. monthly rate/30 days. ((annual rate/12)/30). G1210.7 |
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If settlement is on April 10th, and the insurance is 50/month, how much does the seller owe for the year? |
Use 360/30. a) 3 months*50=$150 b) 10 days * ($50/30=1.66)=16.66 c) total cost to seller: $150+$16.66=$166.66 G1210.7 |
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How do you calculate daily rent? (Useful for investment property sales) |
a) use 365 method of proration b) rent/(# of days in month of closing)=daily rent rate. G1210.8 |
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Which proration method would you use for rent? |
365. G1210.8 |
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If the seller owns the property for 3 days in December, how much rent income does the buyer get? |
a) calculate daily rent (rent/31 days in Dec) b) 31-3=28 days c) buyer gets daily rate*28 days. G1210.8 |
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Proration 365 calculates ________ |
EVERY DAY! No assumptions, no rounding. G1210.8 |
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Utilities are often prorated using which method? |
365. G1210.8 |
