Natalie wants to make a 25% profit on her $70,000 land investment (there is no mortgage). She figures agents charge a 6% commiss

Natalie intends to achieve a 25% profit on a sale of $70,000. To calculate, she does the following:

(125 ÷ 100) × 70000 = $87500.

Natalie aims for $87500, however, the agent will take a 6% commission on the sale price, so she must include this amount, calculated as:

(106 ÷ 100) * 87500 = $92750.

For the total of $92750, there is an additional closing cost of $1200,

This gives us $92750 + $1200 = $93950.

When rounding $93950 to the nearest hundred, we arrive at $94000.

Therefore, to secure a 25% profit, Natalie should set the final sale price at $94000.

Answer:

Final sale price = $94,000

Explanation:

Investment cost = $70,000

Profit from investment = 1.25 × $70,000 = 87,500

Agent fee = 6%

Agent's commission =.06 × 87,500

= $5,250

Additional charges = $1,200

Final sale price = $87,500 + 1200 + 5250 = 93,950 = $94,000 (to the nearest hundred)