Real Estate Math

A Colorado homeowner wants to price their home so they net at least $400,000 after paying a 5.5% commission. What is the minimum sale price?

A$421,053
B$422,535✓ Correct
C$423,729
D$440,000

Explanation

Minimum sale price = Net / (1 − Commission) = $400,000 / 0.945 = $423,280.

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