Question

Katie is about to list her house as For Sale By Owner. Suppose she needs to allow for a 6% commission for the buyer's realtor, and she needs to receive a minimum of $228,100 on the sale. What is the minimum Katie can list the house to accommodate both of these requirements? Round to the nearest hundred dollars.

Answer 1

Answer:

$Minimum = \ 241786$

Step-by-step explanation:

Given

$Amount = \ 228,100$

$Commission = 6\%$

Required

Determine the minimum Katie will list the house

The given minimum is the minimum she can receive for the house after commission

To calculate the listing minimum, we make use of the following:

$Minimum = Amount + Commission * Amount$

$Minimum = \ 228,100 + 6\% * \ 228,100$

$Minimum = \ 228,100 + \ 13686$

$Minimum = \ 241786$

The minimum She can list the house is $241786