Rationale
The two parcels of land should have cost $1,060,500 together.
To determine the total cost, we first need to calculate the cost of each parcel individually and then sum them. The 5-acre parcel costs $10,500, while the 1 square mile parcel, which is 640 acres, costs $1,320,000. Adding these amounts gives a total of $1,060,500.
A) $766,000
This amount is incorrect as it does not account for the correct calculations of both parcels. The 5-acre parcel alone costs $10,500, and with the larger parcel costing significantly more, $766,000 falls well short of the total.
B) $914,760
This choice also miscalculates the total cost of the parcels. The calculations for both the 5-acre and the 1 square mile parcel would yield a number much higher than $914,760, indicating a significant miscalculation.
C) $1,060,500
This is the correct total cost when both parcels are calculated correctly. The 5-acre parcel at $2,100 per acre costs $10,500, while the 1 square mile (640 acres) costs $1,320,000, leading to a cumulative total of $1,060,500.
D) $1,354,500
This amount is incorrect as it overestimates the total cost. The calculations for both parcels do not support this figure, which suggests an error in the understanding of the pricing per acre or the size of the parcels.
Conclusion
The total cost for purchasing both parcels of land accurately amounts to $1,060,500. This figure is derived from the individual calculations based on their sizes and the price per acre. Understanding the relationship between area and cost is critical for accurate financial assessments in real estate transactions.
