Karl wants to get $80,000 for his house the real estate agent charges 8% of the selling price for selling the house. What should the selling price be?
.08x = 80000
80000/.08 = x
x= $1,000,000
0.92x = 80,000
x = 80,000 / 0.92
x = 86,956.52
To determine the selling price Karl should set for his house, we need to consider the real estate agent's commission. The agent charges 8% of the selling price, which means they will earn 8% of the total amount received from the sale.
Let's break down the problem step by step:
1. Calculate 8% of the desired selling price:
Commission = 8% * Selling Price
2. Subtract the commission from the desired amount Karl wants to get:
Karl's Earnings = Selling Price - Commission
3. Set up an equation using the given information:
Karl's Earnings = $80,000
Now, let's solve the equation:
Karl's Earnings = Selling Price - Commission
$80,000 = Selling Price - 8% * Selling Price
To simplify the calculation, let's express 8% as a decimal (8/100 = 0.08):
$80,000 = Selling Price - 0.08 * Selling Price
$80,000 = Selling Price * (1 - 0.08)
$80,000 = Selling Price * (1 - 0.08)
$80,000 = Selling Price * 0.92
To isolate the Selling Price, divide both sides of the equation by 0.92:
$80,000 / 0.92 = Selling Price
Calculating this, the selling price should be approximately $86,956.52.
Therefore, Karl should set the selling price of his house to approximately $86,956.52 in order to receive $80,000 after the real estate agent's commission is deducted.