If someone bought a house for 100,000 and wants to resell for a 40% profit AFTER a 10% broker fee, how much would they have to sell the house for?

Question

This question is in my real estate principles course book. I got an answer that was not correct in the book, and two other people have gotten the same answer. We have no idea how to get the so called "correct" answer. I'm just asking on here to see if maybe someone agrees with us or if maybe we just have no idea what we are doing.

Answer 1

The amount the house needs to sell for can be represented by the variable x. We know that we need to make a 40% profit, thus the bottom line would need to be 1.4 times the value in which the home was purchased or $140,000. This price comes after the broker takes his 10%. We get the amount the house should sell for by the following equation:

 

$140,000 = x - .10x 

 

We get: x = $155,555.55

Answer 2

i keep on trying to answer this question, but something keeps on interrupting me. I got an answer of $155,555.56. If that is right, let me know....and I'll try to get my solution to get through.