22. 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?
Answer: A
$79,790
To determine the net to the seller, we need to account for the broker fee, other expenses, and the note paid by the seller. The total deductions from the sale price of $88,000 include a 7% broker fee of $6,160, other expenses of $750, and the seller's note of $2,000, resulting in a net amount of $79,790.
A) $79,790
This option accurately reflects the net amount received by the seller after all deductions. The calculation involves subtracting the broker fee ($6,160), other expenses ($750), and the note ($2,000) from the sale price of $88,000, leading to a final figure of $79,790.
B) $80,340
This option is incorrect as it does not account for the full amount of the broker fee. If we consider the broker fee of $6,160 and other expenses of $750, the net amount would still be lower than $80,340 after including the seller's note.
C) $81,840
This choice is also incorrect as it suggests a net amount that has not properly deducted the broker fee and other expenses. The calculations show that the broker fee alone significantly reduces the net to the seller, making this option inaccurate.
D) $82,000
This option fails to account for the necessary deductions from the sale price. The seller's total expenses, including the broker fee and the seller's note, would lead to a net amount well below $82,000, rendering this option invalid.
Conclusion
The correct answer is $79,790, as it accurately reflects the net amount after all deductions from the sale price. Each of the other options fails to consider the full impact of the broker fee, other expenses, or the seller's note, leading to inflated net amounts. Thus, Option A is the only correct calculation based on the provided data.