Question

~PLEASE HELP OFFERING 10 POINTS~

Third federal bank is in a national search for a new Director of Human Resources. The recruiting budget is $30,000. So far, the bank has spent $8,600 on advertising and $7,650 on interviewing. The bank is willing to pay a 5.5% commission to a broker for selling the new director's home. What is the maximum selling price on which the bank would pay a 5.5% commision and stay within its budget? Express your answer in dollars and cents.

Use the following equations to help

Total Recruiting Cost = Advertising Costs + Interviewing Costs + Hiring Costs

Hiring Costs = Rate of Commission * Sale Price of the Home

Answer 1

Subtract the advertising cost and interviewing costs from the total budget to see how much is left:

30,000 - 8,600 - 7,650 = $13,750, this is how much they can spend on commission.

Divide the amount they can spend by the rate:

13,750 / 0.055 = 250,000

The maximum selling price for the house is $250,000