Real Estate Principles 11th Edition by Charles Jacobus

Exercise 5

A buyer agrees to assume an existing 8% mortgage on which $45,000 is still owed; the last monthly payment was made on March 1 and the next payment is due April 1. The settlement date is March 12. The local custom is to use a 30-day month and charge the buyer interest beginning with the settlement day. Calculate the interest proration. To whom is it credited? To whom is it charged?