Real Estate Math
A seller owes $185,000 on their mortgage. They want to net $130,000 after paying the loan and a 5% commission. What must the house sell for?
A$320,000
B$331,579✓ Correct
C$336,842
D$342,000
Explanation
Required gross = (Loan + Net) / (1 - Commission rate) = ($185,000 + $130,000) / 0.95 = $315,000 / 0.95 = $331,578.95 ≈ $331,579.
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