A seller wants to net $275,000 after paying a 5.5% commission and $8,500 in closing costs. What minimum price must the property sell for?

Explanation

Net = Sale Price − (Sale Price × 5.5%) − $8,500 = Sale Price × (1 − 0.055) − $8,500 = Sale Price × 0.945 − $8,500. Setting equal to $275,000: $275,000 + $8,500 = Sale Price × 0.945; $283,500 ÷ 0.945 = $300,000.945 = $283,500 − $8,500 = $275,000. The correct answer is $275,000. Re-examining options: $300,000 × 0.945 = $283,500; $283,500 − $8,500 = $275,000 ✓. The correct answer is $275,000.