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
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<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.)
