Question

An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?

Answer 1

Answer:

selling price is $90425.53

Explanation:

GIVEN DATA:

Commission 6%

net funds $10,000

mortgage is $75,000

Required selling price is given as

$= \frac{Net\ funds\ required}{1 - commission}$

$= \frac{10,000 + 75000}{1 - 0.06}$

$=\frac{85000}{0.94}$

=$90425.53

selling price is $90425.53