Michigan Real Estate Exam Practice Question
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?
Correct Answer: A
Rationale: To determine the net to the seller, first calculate the total deductions from the sale price of $88,000. The broker fee is 7% of $88,000, which amounts to $6,160. Adding the $750 in other expenses brings the total deductions to $6,910. Subtracting this from the sale price gives $81,090. However, the seller also has a $2,000 note to pay, reducing the net amount to $79,090.
Option A ($79,790) is incorrect as it does not account for the full deductions. B ($80,340) and C ($81,840) also fail to include the note payment. D ($82,000) incorrectly suggests a higher net without considering the broker fee and expenses.
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