Question

Chloe wants to net 50000 on her house. Her closing costs will be 8000 plus 7% commission. She owes 200000 on her loan . What is the minimum contract price that she can accept for the property?

Answer 1

Answer:

$277,419

Step-by-step explanation:

Relevant Data provided as per the question is

Net amount = 50,000

Closing cost = 8,000

Loan amount = 200,000

Commission percentage = 7%

According to the given situation, the calculation of the minimum contract price is shown below:-

$Minimum\ contract\ price = \frac{(Net\ amount\ +\ Closing\ cost\ +\ Loan\ amount) }{Remaining\ percentage}$

$= \frac{(50,000 + 8,000 + 200,000)}{(100\% - 7\%)}$

$= \frac{258,000}{93\%}$

= $277,419

Therefore for calculating the minimum contract price we simply applied the above formula.