Mr. and Mrs. Ogrodnik want to list their house at a price that will net them a minimum of $320,000 after a real estate commission of 5.5% of the selling price. Rounded to the nearest $100, what is the lowest offer they could accept on their home?
1.055 * 320,000 = ?
Set up an equation then solve:
320000 = x - x*(.055)
where x is the amount they must sell their house for minus the 5.5 interest rate and still maintain 320000
x = 338624
But it says to round to the nearest $100, so
x = 338600
Actually after reading the problem, I think I rounded wrong.
338700 should be the correct answer.
To find the lowest offer that Mr. and Mrs. Ogrodnik could accept on their home, we need to work backwards from the desired net amount of $320,000.
Step 1: Calculate the total amount before the commission.
To do this, we will use the formula: Total amount = Desired net amount / (1 - Commission rate)
Substituting the given values:
Total amount = $320,000 / (1 - 0.055)
Step 2: Calculate the selling price.
The selling price is the total amount before the commission.
Selling price = Total amount
So, the selling price is approximately $337,931.03 (rounded to the nearest cent).
Step 3: Round the selling price to the nearest $100.
To round the selling price to the nearest $100, we need to round it to the nearest hundred.
Rounded selling price = Round(selling price / 100) * 100
Rounded selling price = Round($337,931.03 / 100) * 100
Rounded selling price = Round(3379.3103) * 100
Rounded selling price = 3400 * 100
The lowest offer they could accept on their home is approximately $340,000 (rounded to the nearest $100).