Real Estate Math

A Kentucky seller owes $145,000 on their mortgage. They want to net $80,000 after paying off the mortgage and a 6% commission. What must the property sell for?

A$229,787
B$234,043
C$238,298✓ Correct
D$240,000

Explanation

Let P = sale price. P × 0.94 = $145,000 + $80,000 = $225,000. P = $225,000 ÷ 0.94 = $239,361.06P − $145,000 = $80,000 → 0.94P = $225,000 → P = $239,361.

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