Math calculation problems

9 Replies

Hey all. I'm studying for the real estate principles final exam at UCLA, and I'm having a hell of a time with the math section. Maybe someone can help me figure this one out.

"An owner sold a property for $35,200 which represents a 10% profit over what was paid. What was the owner's cost?"

I know the answer is $32,300, but I can't figure out why.  What am I not seeing?

The answer is actually $32,000.  $32,000 plus $3,200=$35,200.   Always work the problem backward.

If $35,000 is 10% greater than his cost, then$35,000 = costs plus 10%(0.10), or costs times 1.10.  

So, going backward; $35,000 divided by 1.10 would equal the cost.

So he didn't pay an agent?

cost = 31,680

@Daria B. Not quite.  The question is about a 10% increase over the Cost of the property....not 10% of the sales price.

$32,000 is the correct answer.

Ok :(

@Wayne Brooks I still don't see it but then again I'm not taking the test.

Original cost = Sales price / markup.

see the 3rd example

http://www.purplemath.com/modules/percntof2.htm

If this is giving you trouble you might want to brush up on some basic algebra, especially if you haven't practiced it in many years. There are many free resources online. I'd suggest taking some practice quizzes.

Originally posted by @Daria B. :

@Brandon Snyder

35,200 x .10  = 3,520

32,500 - 3,520 = 31,680

Cost = 31,690

?

The question is a situation where there is the purchase price and a 10% profit based on the purchase price.

The math demonstrated earlier correctly address the problem that was asked.

The example you are giving is 10% of the final selling price is profit.

To further simplify assume the purchase price was 100K.  

If the profit was 10% of the purchase price it would be 10K.  That would mean that the final selling price would 110K(100K purchase + 10K profit).  However if you look at the profit percentage of the final selling price it will be 9.09%(10K profit/110 final selling price). 


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