Real Estate Math
A Pennsylvania seller nets $285,000 after paying a 5% broker commission and $8,000 in closing costs. What was the selling price?
A$307,368
B$313,000
C$308,421✓ Correct
D$318,000
Explanation
Net = Sale Price times (1 minus commission rate) minus closing costs. $285,000 = SP times 0.95 minus $8,000. Adding $8,000 to both sides: $293,000 = SP times 0.95. Dividing: SP = $293,000 divided by 0.95 = $308,421.05, approximately $308,421. The seller received $285,000 net after the 5% broker commission ($15,421) and $8,000 in closing costs were deducted from the $308,421 sale price.
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