Real Estate Math

A Nevada listing agreement calls for a 6% commission. The seller paid $180,000 for the home and made $25,000 in improvements. If the sale price must cover the commission plus the seller's original investment plus improvements, what is the minimum sale price?

A$214,893
B$219,149
C$218,085✓ Correct
D$215,000

Explanation

Total needed = $205,000 (cost + improvements). Let P = sale price. P – 0.06P = $205,000. 0.94P = $205,000. P = $205,000 / 0.94 = $218,085.

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