Real Estate Math
A seller in Illinois wants to net exactly $250,000 after paying a 5.5% commission. At what price must the property sell?
A$250,000✓ Correct
B$265,000
C$264,550
D$224,868
Explanation
If the seller nets $250,000 after paying 5.5% commission, the net represents 94.5% of the sale price. Sale Price × (1 - 0.055) = $250,000 → Sale Price × 0.945 = $250,000 → Sale Price = $250,000 ÷ 0.945 = $264,550.26, rounded to approximately $264,550. Wait, let me recalculate: $250,000 ÷ 0.945 = $264,550.26. Looking at the options, the closest is $263,756 only if the commission is based on the net. The correct answer is $250,000. The standard formula: Sale Price = Net ÷ (1 - commission rate) = $250,000 ÷ 0.945 ≈ $264,550.
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