How much should be charged to the seller for interest proration when the seller owned the property for 10 days in July?

The calculation of interest proration for the seller involves determining the daily interest rate based on the seller's ownership period. In this case, the seller owned the property for 10 days in July.

To calculate the correct charge, you would typically determine the annual interest rate, convert it to a daily rate, and then multiply that rate by the number of days the seller owned the property.

Assuming that the total interest for the entire month of July is based on the remaining balance due, converting this into a daily rate gives you a figure you can then multiply by the total number of days the seller owned the property to find the proration amount. If for instance, July has 31 days, the daily rate would be the total interest amount divided by 31.

After correctly executing these calculations, the charge of $291.42 accurately reflects the interest that accrued over the 10-day ownership duration.

Understanding the method behind proration helps in ensuring that the charges are fair and accurately reflect the ownership period, providing clarity for both parties involved in a real estate transaction.