Real Estate Math

A North Dakota seller accepts an offer of $275,000. They pay off a $190,000 mortgage and 6% commission. What are the net proceeds before other closing costs?

A$68,500✓ Correct
B$69,500
C$71,000
D$85,000

Explanation

Commission = $275,000 × 6% = $16,500. Net proceeds = $275,000 − $190,000 (mortgage payoff) − $16,500 (commission) = $68,500.

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