Martin Ellingham is negotiating to buy a vacation cottage in Port Wenn. The seller of the cottage is asking $186,000. Martin offered him a cash deal, owner-seller (no broker) only if the seller would reduce the price by 12%. The seller agreed. Martin must pay 10% down payment upon signing the agreement of sale. ... Goes on...
I know how to set up the problem I am just stuck on the reduction of price. I need help setting that part up. My guess is:
$186,000 X 12%=?
If did that, you'd need to subtract that answer from 186,000.
A more efficient way is
0.88 * 186,000 = 163,680
to reduce by 12 % multiply by 1-.12 = 0.88
thank you both!
You're welcome.
To calculate the reduction in price, you need to multiply the original price by the percentage reduction. In this case, Martin Ellingham is negotiating a 12% reduction in the selling price of $186,000.
To find the reduction amount, you multiply $186,000 by 12% (expressed as a decimal).
$186,000 x 0.12 = $22,320
So, the reduction in price is $22,320.