Ace the Arizona Real Estate Exam 2025 – Unlock Your Property Dreams!

To determine the selling price that James must achieve for his home, we need to calculate the total costs he needs to cover and then factor in the real estate commission.

First, let's add up all of James's obligations:

1. First mortgage: $96,000

2. Second mortgage: $12,000

3. Cash needed for himself: $10,000

4. Closing costs: $3,100

Adding these amounts gives us a subtotal of:

$96,000 + $12,000 + $10,000 + $3,100 = $121,100

Now, we need to account for the real estate commission, which is 7% of the selling price. Let’s denote the selling price as \( P \).

James will receive \( P \) minus the 7% commission, which can be expressed as \( P - 0.07P = 0.93P \).

To find the selling price, we set up the following equation to ensure that after paying off all obligations, he is left with the amount he needs:

0.93P = $121,100

To solve for \( P \), we divide both sides by 0.93:

\( P = \frac