Real Estate Math

A property owner wants to net $275,000 after paying a 5% commission. What must the property sell for?

A$285,000
B$288,000
C$289,474✓ Correct
D$290,000

Explanation

Required sale price = Net ÷ (1 − Commission rate) = $275,000 ÷ 0.95 = $289,473.68, approximately $289,474.

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