A parcel is sold for $88,000 with a 7% broker fee, $750 in other expenses, and a note paid by the seller of $2,000. What is the net to the seller?

Rationale

$79,790 is the net amount to the seller after all deductions.

To find the net amount the seller receives, we need to deduct the broker fee, other expenses, and the note paid by the seller from the sale price of the parcel. The calculations show that after applying these deductions, the seller ends up with $79,790.

A ($79,790) CORRECT

This choice correctly reflects the net amount received by the seller after all deductions. The calculations are as follows: the broker fee is 7% of $88,000, which equals $6,160. Adding the other expenses of $750 and the $2,000 note paid by the seller results in total deductions of $8,910. Thus, $88,000 - $8,910 equals $79,790.

B ($80,340) YOUR ANSWER

This amount is incorrect because it does not account for the full broker fee. A calculation error may have occurred, as this figure seems to reflect a deduction of only part of the fees, leading to an overestimate of the net amount.

C ($81,840) YOUR ANSWER

This choice represents a net amount that fails to consider the total deductions accurately, particularly the broker fee and other expenses. It suggests a misunderstanding of how the fees impact the net proceeds to the seller.

D ($82,000) YOUR ANSWER

This option is incorrect as it overlooks the broker fee and other expenses entirely, implying that the seller receives a higher amount without accounting for necessary deductions. It does not reflect the true calculation of net proceeds.

Conclusion

The net amount to the seller is calculated by subtracting the total deductions, including the broker fee, other expenses, and the note paid by the seller from the sale price. In this case, the seller's net proceeds are accurately determined to be $79,790, revealing the importance of careful calculations in financial transactions.

A parcel is sold for $88,000 with a 7% broker fee, $750 in other expenses, and a note paid by the seller of $2,000. What is the net to the seller?

$79,790 is the net amount to the seller after all deductions.

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