Real Estate Math
A Michigan seller nets $185,000 after paying a 6% commission. What was the sale price?
A$196,810
B$185,000✓ Correct
C$200,000
D$195,000
Explanation
Net = Sale Price x (1 - 0.06). $185,000 = SP x 0.94. SP = $185,000 / 0.94 = $196,808.51, approximately $196,809. The94 = $196,808.51. Best answer is approximately $197,872 is incorrect; correct is ~$196,809. The net proceeds formula: SP = Net / (1 - commission rate) = $185,000 / 0.94 ≈ $196,809.
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