Real Estate Math
A Minnesota seller accepts $419,000 after paying a 5.5% commission and $2,500 in other closing costs. What was the approximate sale price?
A$444,000
B$421,500✓ Correct
C$446,000
D$443,000
Explanation
Net proceeds = Sale Price x (1 - 0.055) - $2,500 = $419,000. Sale Price x 0.945 = $421,500. Sale Price = $421,500 / 0.945 = $446,032. Alternatively, using approximation: Sale Price = ($419,000 + $2,500) / 0.945 = $421,500 / 0.945 = approximately $446,032, closest to $445,238 with rounding differences.
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