The seller received a closing check of 121,600 after paying a 7 percent commission, 31,000 in other closing costs, and a 135,700 loan payoff. What was the total sales price?

The seller received a closing check of 121,600 after paying a 7 percent commission, 31,000 in other closing costs, and a 135,700 loan payoff. What was the total sales price?

• A. 310,000
• B. 320,000
• C. 300,000
• D. 350,000

Answer: (A)

The seller’s net at closing comes from the sale price after deducting the agent’s commission, other closing costs, and any loan payoff. Since the commission is 7% of the sale price, the amount the seller actually receives is: sale price minus 0.07 × sale price minus 31,000 minus 135,700. This net equals 121,600. Set up the equation: 121,600 = 0.93 × sale_price − 31,000 − 135,700. Combine the fixed costs to get 121,600 = 0.93 × sale_price − 166,700. Add 166,700 to both sides to get 288,300 = 0.93 × sale_price. Solve for sale_price: sale_price = 288,300 / 0.93 = 310,000. So, the total sales price is 310,000.

The seller’s net at closing comes from the sale price after deducting the agent’s commission, other closing costs, and any loan payoff. Since the commission is 7% of the sale price, the amount the seller actually receives is: sale price minus 0.07 × sale price minus 31,000 minus 135,700. This net equals 121,600.

Set up the equation: 121,600 = 0.93 × sale_price − 31,000 − 135,700. Combine the fixed costs to get 121,600 = 0.93 × sale_price − 166,700. Add 166,700 to both sides to get 288,300 = 0.93 × sale_price. Solve for sale_price: sale_price = 288,300 / 0.93 = 310,000.

So, the total sales price is 310,000.