Question

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 5.5% commission and stay within its budget? Express your answer in dollars and cents.

Answer 1

Remaining budget = 30000 - 8600 - 7650 = $13750

13750 = .055x

x = 13750 / .055 = $250,000 max selling price

Answer 2

The maximum selling price is $250,000.

Explanation:

The recruiting budget is $30,000.

The bank has spent $8,600 on advertising and $7,650 on interviewing.

Total money spent =
`8600+7650=16250`

Let the maximum selling price be = m

Commission rate = 5.5% or 0.055

The remaining budget is =
`30000-16250=13750`

So, commission paid will be $13750 and this is 5.5% of maximum selling price.

We can calculate as:

`0.055* m=13750`

=>
`m=13750/0.055`

m = $250,000

Hence, maximum selling price is $250,000.