A buyer who assumes a seller's loan balance of $93,000 at 7.5% interest will receive a credit for interest at closing if the payment has been made on September 1 and closing is on September 20. How much will the buyer be credited?

To determine how much the buyer will be credited for interest at closing, we need to first calculate the daily interest on the assumed loan balance and then consider the number of days until the next payment is due.

The loan balance is $93,000 and the interest rate is 7.5%. To find the daily interest, we can use the following formula:

1. Calculate the annual interest: [ \text{Annual Interest} = \text{Loan Balance} \times \text{Interest Rate} = 93,000 \times 0.075 = 6,975 ]

2. Calculate the daily interest by dividing the annual interest by the number of days in a year (typically 365 days): [ \text{Daily Interest} = \frac{\text{Annual Interest}}{365} = \frac{6,975}{365} \approx 19.08 ]

3. Calculate the number of days from the last payment date (September 1) to the closing date (September 20):

   • This is 19 days.

4. Now, to find the total interest credit at closing, multiply the daily interest by the number of days: