If a Seller wants to net exactly $50,000 but must pay a 7% commission and a $1200 settlement fee, what must the property sell for?

If a Seller wants to net exactly $50,000 but must pay a 7% commission and a $1200 settlement fee, what must the property sell for?

• A. $50,000
• B. $55,053.76
• C. $51,200
• D. $58,000

Answer: (B)

To determine the selling price of the property, one must account for the seller's net desire of $50,000, the 7% commission, and the $1,200 settlement fee. First, the total amount the seller needs to receive after all costs are deducted is $50,000. However, the seller also has to cover the costs incurred from the commission and the settlement fee. Let's denote the selling price as "X." The commission of 7% will be calculated on the selling price, which means the seller only retains 93% of the selling price after the commission is deducted (100% - 7% = 93%). Therefore, the amount retained from selling the property before considering the settlement fee will be: 0.93X Since the seller also has to pay the $1,200 settlement fee, the equation to represent the seller's net proceeds becomes: 0.93X - $1,200 = $50,000 To find X, you need to solve the equation: 0.93X = $50,000 + $1,200 This simplifies to: 0.93X = $51,200 Now, divide both sides by 0.93 to solve for X:

To determine the selling price of the property, one must account for the seller's net desire of $50,000, the 7% commission, and the $1,200 settlement fee.

First, the total amount the seller needs to receive after all costs are deducted is $50,000. However, the seller also has to cover the costs incurred from the commission and the settlement fee. Let's denote the selling price as "X."

The commission of 7% will be calculated on the selling price, which means the seller only retains 93% of the selling price after the commission is deducted (100% - 7% = 93%). Therefore, the amount retained from selling the property before considering the settlement fee will be:

0.93X

Since the seller also has to pay the $1,200 settlement fee, the equation to represent the seller's net proceeds becomes:

0.93X - $1,200 = $50,000

To find X, you need to solve the equation:

0.93X = $50,000 + $1,200

This simplifies to:

0.93X = $51,200

Now, divide both sides by 0.93 to solve for X: