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

Given that the recruiting budget is $30,000 out of which $8,600 has been spent on advertising and $7,650 on interviewing.

Thus the amount remaining to be spent is $30,000 - $8,600 - $7,650 = $13,750

Let the maximum selling price on which the bank would pay 5.5% commission and stay within its budget be x, then
1.055x = $13,750
x = $13,750 / 1.055 = $13,033.18

Therefore, the maximum selling price on which the bank would pay 5.5% commission and stay within its budget is $13,033.18