A homeowner wants to net $45,000 after selling. If her mortgage balance is $68,000 and the commission rate is 7%, what should be the selling price?

To determine the correct selling price that allows the homeowner to net $45,000 after paying off her mortgage and the real estate commission, we need to account for several key components:

1. The homeowner's desired net amount: $45,000.
2. The outstanding mortgage balance that must be paid: $68,000.

3. The real estate commission, which is a percentage of the selling price (7%).

The selling price can be calculated as follows:

Let the selling price be represented as "P." The commission is 7% of "P," which is 0.07P. When selling the property, the net amount the homeowner receives can be expressed by the formula:

Net Proceeds = Selling Price - Mortgage Balance - Commission

This translates into:

Net Proceeds = P - $68,000 - 0.07P

Since the homeowner wants to net $45,000, we can set up the following equation:

$45,000 = P - $68,000 - 0.07P

Combining like terms, we can simplify:

$45,000 = (1 - 0.07)P - $68,000 $45,000 = 0.93P - $