Question 18

The seller should net $109,900.

To calculate the seller's net amount from the sale, we subtract the mortgage balance, closing costs, and brokerage fee from the selling price. After performing the calculations, the seller's net proceeds amount to $109,900.

A) $108,250

Option A is incorrect because it does not take into account the correct calculation of the brokerage fee or the net amount after all deductions. The calculations leading to this figure fail to accurately reflect the total deductions from the sale price.

B) $109,900

This option correctly represents the seller's net proceeds after deducting the mortgage balance, closing costs, and brokerage fee from the sale price of $150,000. The detailed computation confirms this amount as accurate, making it the right choice.

C) $110,090

Option C is incorrect as it miscalculates the deductions necessary to arrive at the seller's net amount. This option does not reflect the correct subtraction of the brokerage fee and closing costs from the selling price, leading to an inflated net figure.

D) $116,500

Option D is also incorrect because it suggests a net amount that does not account for the mortgage balance and closing costs. This figure overlooks essential deductions, resulting in an unrealistic net profit for the seller.

Conclusion

The correct answer, $109,900, accurately reflects the seller's net proceeds after accounting for all necessary deductions, including the brokerage fee, mortgage balance, and closing costs. All other options fail to consider one or more of these critical elements, resulting in incorrect net amounts. Thus, option B is definitively the only correct choice.