Question

If Seller Sam paid $488 for transfer taxes at closing, and the rate was $1.00 for every $400 or fraction thereof of the sale price, what was the sale price?

Answer 1

Answer: The selling price was $195,200

Explanation:

Given:

Tax paid = $488

Rate = $1 per $400 = 1/400

Using the formula;

Tax = rate × selling price

Selling price = tax /rate

Selling price = $488/(1/400) = $488×400 = $195200