A seller wants to net $400,000 after paying a 5% commission and $6,000 in other closing costs. What minimum sale price is needed?
Correct Answer
D) $427,368.42
Step 1: The seller wants $400,000 after the 5% commission and $6,000 costs. Step 2: Net = Price × (1 − 0.05) − $6,000 = $400,000. Step 3: Price × 0.95 = $406,000. Step 4: Price = $406,000 ÷ 0.95 = $427,368.42.
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