Real Estate Math

A Delaware property owner wants to sell their home for a net of $200,000 after paying a 6% commission and $4,000 in closing costs. What must the minimum sale price be?

A$217,021✓ Correct
B$219,574
C$215,909
D$220,000

Explanation

Let SP = sale price. SP − 0.06(SP) − $4,000 = $200,000. SP(0.94) = $204,000. SP = $204,000 ÷ 0.94 = $217,021.

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