Question

After paying closing expenses of $550 and a 6% commission, the seller received a check for $149,850. What was the sale price of the property?

A)
$160,000
B)
$159,424
C)
$150,400
D)
$155,424

Answer 1

The seller's sale price was found by adding the closing expenses of $550 and the amount received after the 6% commission was subtracted from the sale price. The final sale price of the property was calculated to be $160,000.

Step-by-step explanation:

To determine the sale price of the property, we must first understand that the seller received $149,850 after paying both the closing expenses and the real estate agent's commission. The commission is a percentage of the sale price, which in this case is 6%. Additionally, the seller paid $550 in closing expenses.

Let's denote the sale price of the property as S. The commission (6% of S) plus the closing expenses ($550) and the amount the seller received ($149,850) together equal the sale price.

So, we have the following equation:
S - 0.06S - $550 = $149,850

Combining like terms gives us:
0.94S - $550 = $149,850

Adding $550 to both sides of the equation to isolate S gives us:
0.94S = $149,850 + $550

0.94S = $150,400

Finally, dividing both sides by 0.94 we find:
S = $150,400 / 0.94 = $160,000

Therefore, the sale price of the property (S) was $160,000, which corresponds to option A.