posted by .

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.

## Similar Questions

How and why would a seller make a sale to a buyer that has no money the seller can use?
2. ### inb

1.How would you accomplish exposure netting with currencies to two countries that tend to go up and down together in value?
3. ### inb

1.How and why would a seller make a sale to a buyer that has no money the seller can use?
4. ### Economics

Suppose a market with two sellers Seller 1 has a marginal cost of c1=20q1 and seller 2 has a marginal cost of c2=40q2 Find the market supply curve in a competitive market where the price = c1= c2
5. ### Economics

What is the effect on the price of hotdogs and the quantity of hotdogs sold if: a.) The price of a hamburger rises?
6. ### real estate finance

A property sells for \$125,000 and the homeowner has a mortgage balance in the amount of \$65,000. The seller is to pay the buyer's expenses in the amount of \$1,000. Seller and buyer agree to close on November 18, 2012. Seller's annual …
7. ### accounting

Exercise 5-3 Analyzing and recording merchandise transactions-both buyer and seller LO P1, P2 Santa Fe Company purchased merchandise for resale from Mesa Company with an invoice price of \$16,000 and credit terms of 3/10, n/60. The …
8. ### Finance

You want to buy a share of Acme Corp. stock. Your on-line broker shows a bid price of \$30, and has a bid-ask spread of \$.50. Assuming you buy “at the market” (i.e., at the prices currently quoted) how much will you pay for a share …
9. ### Math geometry

An architect is designing an A-frame cottage for a resort. A cross section of the cottage is an isosceles triangle. The front wall of the cottage must accommodate a sliding door. Knowing that the architect is allowed a rectangular …
10. ### Math

A property dealer charges 2℅ of the commission from a buyer or a seller of property . If the seller paid 20000 ruppes as commission for purchasing the flat . What was the value of the flat?

More Similar Questions