Math calculation problems

[Brandon Snyder]

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?

[Wayne Brooks]

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.