Question

Martin Ellingham is negotiating to buy a vacation cottage in Port Wenn. The seller of the cottage is asking $186,000. Martin offered him a cash deal, owner-seller (no broker) only if the seller would reduce the price by 12%. The seller agreed. Martin must pay 10% down payment upon signing the agreement of sale. ... Goes on...

I know how to set up the problem I am just stuck on the reduction of price. I need help setting that part up. My guess is:
$186,000 X 12%=?

Answer 1

If did that, you'd need to subtract that answer from 186,000.

A more efficient way is
0.88 * 186,000 = 163,680

Answer 2

to reduce by 12 % multiply by 1-.12 = 0.88

Answer 3

thank you both!

Answer 4

You're welcome.