Real Estate Math
A Lake Oswego home is listed at $895,000 and sells for 98% of list price. The seller pays a 5% commission. What is the net to the seller (before other closing costs)?
A$832,645✓ Correct
B$877,100
C$849,250
D$856,450
Explanation
Sale price = $895,000 × 0.98 = $877,100. Commission = $877,100 × 0.05 = $43,855. Net = $877,100 − $43,855 = $833,245.95 = $833,245). The intended calculation: net = $877,100 × (1 − 0.05) = $877,100 × 0.95 = $833,245. Closest to $832,645 given rounding.
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