Help with a story problem?

Question

Can someone help with this story problem?

A house was purcahsed at a price of $126026 The seller wants to sell it and make a profit of exactly 12% However, The seller will work with a Real Estate Agent to sell the home. The agent must make a commision of exactly 5.9% (in addition to the desired 12% for the seller. How much must the agent sell the house for? Answer to the nearest dollar.

Answer 1

First take 12% of $126026 for the seller. This can be expressed as:

.12 x $126026 which gives $15123.12.

Next take 5.9% of $126026 to find the agents commission. This can be expressed as

.059 x 126026 which equals $7435

To find the total sale price for the house we add the purchase price, $126026 plus the desired profit of $15123.12 and the agent comission of $7435.

This gives a sale price of $148584.12. We round this down to

$148584