Final answer:
The question involves real estate mathematics under the subject of Mathematics, typically suitable for High School level. It examines changes in property values and the implications of a 5% broker's commission on a house originally listed at $184,900 and sold for $180,000.
Step-by-step explanation:
The subject of the provided scenario falls under Mathematics, particularly real estate mathematics which involves calculations like percentages, profits, and valuation to understand the financial aspects of buying and selling properties.
For instance, when Freda bought a house for $150,000 and it is now valued at $250,000, this indicates a significant increase in property value. In the case of Ben, who purchased a house for $100,000 with a 20% down payment, the remaining borrowed amount from the bank and the appreciation of the property to $160,000 demonstrate concepts of down payments, loans, and equity.
These scenarios exemplify how housing prices have undergone changes over time, as reported by sources like FRED® Economic Data and the U.S. Census. The median sales price for an existing one-family home increased from $122,900 in 1990 to $232,000 by the end of December 2016, showing an average financial return of 3.1% per year.