Question

A seller wants to break even after the broker’s commission of 5% and loan balance of $300,000 are paid. At what price must the house sell?

Answer 1

At $315,789 the house must be sold after taking into consideration the broker's commission.

What do you mean by broker’s commission?

A broker’s commission is a brokerage firm employee who is compensated for the number of trades they execute for clients.

These brokers typically earn a percentage of the assets traded by their clients, which means that the more a client trades, the more money they make.

In order to calculate the selling price, we have to start with 100% minus a 5% commission, which is 95% or .95.

Take $300,000 and divide this amount by .95.

This will give the amount or the price at which we can sell the house which is $315,789.

Thus, At $315,789 the house must be sold after taking into consideration the broker's commission.

To learn more about  broker's commission refer:

brainly.com/question/14838861

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