Question

An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?

Answer 1

selling price is $90425.53

Step-by-step explanation:

GIVEN DATA:

Commission 6%

net funds $10,000

mortgage is $75,000

Required selling price is given as

`= (Net\ funds\ required)/(1 - commission)`

`= (10,000 + 75000)/(1 - 0.06)`

`=(85000)/(0.94)`

=$90425.53

selling price is $90425.53