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17-Jun-2004

Ann purchased a house for $ 172200. She wants to sell it for a profit of exactly 15%. However, she does not want to sell it herself. She wants a Real Estate Agent to sell it for her. The Agent must make a commission of exactly 5.7% (in addition to Ann's 15% profit). How much must the Agent sell the house for? Give your answer to the nearest dollar.



The Agent must sell Ann's house for $ 210000. The Agent gets $ 11970 as commission (i.e., 0.057 x 210000). Ann gets (including profit) $ 198030, i.e., 210000 - 11970. It may be noted that: (198030 - 172200) / 172200 x 100 = 15%. Importantly, profit is calculated on purchase cost (by Ann) and commission is calculated on selling price (by the Agent).

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