Real Estate Math

A North Dakota commercial property sells for $1,500,000. The seller pays $22,500 in prorated property taxes, $45,000 in broker commission, and retires a $900,000 mortgage. What are the seller's net proceeds?

A$512,500
B$532,500✓ Correct
C$550,000
D$555,000

Explanation

Net proceeds = $1,500,000 − $22,500 − $45,000 − $900,000 = $532,500. Using the values given ($1,500,000, $22,500), apply the appropriate formula..

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