A house sold for $275,000 which was 9% less than the original cost. What was the original cost?
Correct Answer
C) $302,197.80
A sale that is 9% less than original cost equals 91% of original cost. Divide $275,000 by 0.91 to obtain $302,197.80. Option C is correct.
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Related Topics & Key Terms
Related Topics:
Key Terms:
Related Concepts
Proration calculations divide shared expenses such as property taxes, insurance, HOA dues, and rent between buyer and seller at closing based on the number of days each party owns the property.
Transfer tax is a tax imposed on the transfer of real property ownership, typically calculated based on the sale price and paid at closing. It is commonly expressed as a rate per $100, $500, or $1,000 of the sale price.
Annual interest is the total amount of interest charged on a loan or investment over a year.
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- → A borrower takes out an interest-only loan of $180,000 at an annual interest rate of 5%. What is the interest due for the first month?
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