Real Estate Math

A Rhode Island property was listed for $450,000 and sold for 96% of list price. The seller paid a 5.5% commission. What was the net proceeds to the seller before other closing costs?

A$408,240✓ Correct
B$410,652
C$432,000
D$416,700

Explanation

Sale price = $450,000 x 0.96 = $432,000. Commission = $432,000 x 0.055 = $23,760. Net proceeds = $432,000 - $23,760 = $408,240.

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