Question

If a seller received a check from escrow in the amount of 37,187.10 and escrow had deducted a commission of 6 percent of the selling price and other expenses of 403.50, the gross selling price was

Answer 1

To find the gross selling price, we need to reverse the deductions made by escrow, which include a commission and other expenses. By using the given information and isolating the selling price variable in an equation, we can determine the gross selling price.

Step-by-step explanation:

To calculate the gross selling price, we need to reverse the deductions made by escrow. Escrow deducted a commission of 6% of the selling price and other expenses of $403.50. Let's call the selling price x:

Commission = 6% of x = 0.06x

Other expenses = $403.50

So, the gross selling price is obtained by adding the deductions to the check received:

Gross selling price = Check received + Commission + Other expenses

Given that Check received = $37,187.10, we can substitute the values:

Gross selling price = $37,187.10 + 0.06x + $403.50

Now, we can solve for x by isolating it on one side:

Gross selling price - $37,187.10 - $403.50 = 0.06x

Subtracting the known values:

Gross selling price - $37,590.60 = 0.06x

Dividing both sides by 0.06:

x = (Gross selling price - $37,590.60) / 0.06

Therefore, the gross selling price depends on the value of x, which can be calculated using the given information.