Real Estate Math

A Kentucky seller needs to net $180,000 after paying a 5.5% commission. What must the minimum sale price be?

A$188,000
B$190,476✓ Correct
C$189,000
D$191,083

Explanation

Net proceeds = Sale price x (1 - Commission rate). $180,000 = Sale price x (1 - 0.055) = Sale price x 0.945. Sale price = $180,000 / 0.945 = $190,476.

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