Answered

Jim sold his home for $300,000. He had $100,000 left to pay on his mortgage, and he paid $6,000 in closing costs. He agreed to a 6% commission on the sale. What is Jim's net profit? $176,000 $194,000 $182,360 $150,000



Answer :

Answer:

$176,000

Explanation:

Step 1: Calculate Real Estate Commission

Real Estate Commission = 6% of $300,000

Real Estate Commission = 0.06×300,000

Real Estate Commission = $18,000

Step 2: Calculate Total Costs Deducted from Selling Price

Total Costs = Remaining Mortgage + Closing Costs + Real Estate Commission

Total Costs = $100,000 + $6,000 + $18,000

Total Costs = $124,000

Step 3: Calculate Net Profit

Net Profit = Selling Price - Total Costs

Net Profit = $300,000 - $124,000

Net Profit = $176,000

Therefore, Jim's net profit from selling his home is 176,000

Other Questions