Real Estate Math
A Massachusetts homeowner has a $620,000 property with a $390,000 mortgage. They sell for $650,000 with a 5% commission. What are their approximate net proceeds?
A$227,500✓ Correct
B$260,000
C$220,000
D$195,000
Explanation
Commission = $650,000 × 5% = $32,500. Net proceeds = $650,000 − $390,000 (mortgage) − $32,500 (commission) = $227,500.
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