What is the minimum sales price if a seller wants to net $153,400 after a 7% commission and 4% closing costs?

What is the minimum sales price if a seller wants to net $153,400 after a 7% commission and 4% closing costs?

• A. $136,526
• B. $170,274
• C. $171,544.07
• D. $172,359.55

Answer: (D)

To determine the minimum sales price at which a seller wants to net $153,400 after accounting for both a 7% commission and 4% closing costs, it is essential to understand how these costs impact the net proceeds. The total percentage taken out for commission and closing costs combined is 11% (7% for commission plus 4% for closing costs). Therefore, the seller ultimately receives only 89% of the sales price after these deductions, as 100% - 11% = 89%. To find the minimum sales price that allows the seller to net $153,400, we can set up the equation: Net proceeds = Sales price x (1 - Total commission and closing cost percentage). In this case: $153,400 = Sales price x 0.89. To solve for the sales price, we rearrange the equation: Sales price = $153,400 / 0.89. Calculating that gives: Sales price = $172,359.55. Thus, this calculation demonstrates that to achieve the desired net amount after accounting for a 7% commission and 4% in closing costs, the minimum sales price must indeed be $172,359.55. This confirms option D as

To determine the minimum sales price at which a seller wants to net $153,400 after accounting for both a 7% commission and 4% closing costs, it is essential to understand how these costs impact the net proceeds.

The total percentage taken out for commission and closing costs combined is 11% (7% for commission plus 4% for closing costs). Therefore, the seller ultimately receives only 89% of the sales price after these deductions, as 100% - 11% = 89%.

To find the minimum sales price that allows the seller to net $153,400, we can set up the equation:

Net proceeds = Sales price x (1 - Total commission and closing cost percentage).

In this case:

$153,400 = Sales price x 0.89.

To solve for the sales price, we rearrange the equation:

Sales price = $153,400 / 0.89.

Calculating that gives:

Sales price = $172,359.55.

Thus, this calculation demonstrates that to achieve the desired net amount after accounting for a 7% commission and 4% in closing costs, the minimum sales price must indeed be $172,359.55. This confirms option D as