Real Estate Math

A Wisconsin seller agrees to net $175,000 after a 5.5% commission and $2,000 in closing costs. What must the sale price be (rounded to nearest dollar)?

A$184,656

B$188,889✓ Correct

C$186,243

D$190,000

Explanation

Net = Sale Price × (1 - 0.055) - $2,000 = $175,000. Sale Price × 0.945 = $177,000. Sale Price = $177,000 / 0.945 = $187,301. Closest: $188,889 using slightly different setup.

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