Explanation: When someone wants to sell a house or condo or townhouse, a real estate agent can provide the help needed. When the seller signs the agreement to sell their home, they oftentimes need to pay some expenses, such as part of the fee for the commission for the real estate agent, legal fees, 'points' to help the buyer qualify for the loan, an inspection or make repairs. The commission and 'points' are usually a percent of the selling price. The total of the expenses is subtracted from the selling price to find the net selling price.
Joe sold a home for $450,000. He needed to pay 4% commission to the real estate agent, 2% to pay 'points', and $7,000 for repairs on the roof. Find the total costs and net selling price. commission: 0.04 * 450,000 = $18,000 'points': 0.02 * 450,000 = $9,000 Total expenses = 18,000 + 9,000 + 7,000 = 34,000 Net selling price: 450.000 - 34,000 = $416,000
Lacey sold a condo for $250,000. She needed to pay 3% commission to the real estate agent, $500 for the inspection and $12,000 for new carpet. Find the total costs and net selling price. commission: 0.03 * 250,000 = $7,500 Total expenses = 7,500 + 500 + 12,000 = $20,000 Net selling price: 250,000 - 20,000 = $230,000
Directions: Use the given information to calculate the total expenses and net selling price for each person. Strive first for high accuracy and then strive to increase your speed. Good luck and I hope you enjoy the challenge!