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Soloha48 [4]
1 year ago
7

You are about to list your house as For Sale By Owner. Suppose you need to allow

Mathematics
1 answer:
lions [1.4K]1 year ago
4 0

Answer:

  (c)  $95,400

Step-by-step explanation:

You want the listing price of your house such that you can clear $92,500 after paying a 3% commission to the buyer's realtor.

<h3>Setup</h3>

The buyer's agent will receive 3% of the sale price (P), so you receive that amount less. You want your share to be $92,500.

  (1 -3%)P = 92,500

<h3>Solution</h3>

Dividing by the coefficient of P, we get ...

  P = 92,500/0.97 ≈ 95,361

We are asked to round this value to the nearest $100. That makes the listing price ...

  $95,400 . . . . listing price

__

<em>Additional comment</em>

You can estimate the listing price by adding 3% of 92500 to that value, and you can estimate the added amount as 3%×90,000 = 2700. That is, you know the listing price needs to be slightly higher than ...

  92500 +2700 = 95,200

Only one of the answer choices is above that value and <em>rounded to the nearest $100</em>. (You can eliminate the first two choices, because they are not properly rounded.)

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