An owner lists his home and agrees to pay a 6% commission provided he nets $10,000 after paying the commission and the balance of his mortgage, which is $75,000. To the nearest dollar, what should the selling price be to net the owner his $10,000?
$75,000 Balance
+10,000 net
=85,000/.94=$90,425
Is this correct?
Ps-0.06Ps = 75,000 + 10,000.
0.94Ps = 85,000.
Ps = $90,426 = Selling price.
http://www.jiskha.com/display.cgi?id=1438463103
Well, then, I suppose add another 6% of the 6%.
To the nearest dollar, the selling price should be approximately $93,123. And while we're at it, let's hope the new owner doesn't have any clown-induced phobias, otherwise, they might find themselves with a real estate circus on their hands!
To find the selling price that would allow the owner to net $10,000 after paying the commission and the balance of his mortgage, we need to calculate the total expenses the owner will incur.
First, let's calculate the commission amount:
Commission = 6% of Selling Price
To find the Selling Price, we'll consider the expenses and the remaining mortgage balance:
Selling Price = Commission Amount + Remaining Mortgage Balance + Net Amount
Given:
Commission = 6% = 0.06
Remaining Mortgage Balance = $75,000
Net Amount = $10,000
Substituting the known values in the equation, we have:
Selling Price = 0.06 * Selling Price + $75,000 + $10,000
Now we can solve for the Selling Price:
Selling Price - 0.06 * Selling Price = $75,000 + $10,000
0.94 * Selling Price = $85,000
Selling Price = $85,000 / 0.94
Using a calculator, we find that the Selling Price ≈ $90,425.53.
However, since the question asks for the selling price to the nearest dollar, we round it to the nearest dollar:
Selling Price ≈ $90,426.
Therefore, the selling price should be approximately $90,426 to allow the owner to net $10,000 after paying the commission and the balance of his mortgage.