Answer: The sale price to the nearest dollar was $61,202
We arrive at the answer as follows:
The term 'netted' refers to the seller's profits after deducting costs and commissions.
Hence we need to add back these amounts to arrive at the sale price.
Net Proceeds $55,000
Add: Costs $1,000
Total $56,000
The commission is 8.5%; however commissions are quoted as a percentage of sales price.
Expressed in other words, if the sale price was 100, commissions were 8.5. That would mean that the total above would be the equivalent of [tex]100 - 8.5 = 91.5[/tex]
From this we can arrive at the sale price as follows:
[tex]Sales Price = \frac{56000 * 100}{91.5}[/tex]
[tex]Sales Price = 61,202[/tex]
