Charlie purchased a lot that measures 800 ft. wide by 500 ft. long. The purchase price was $850,000. What was the price Charlie paid per ACRE?

Rationale

$92,592.59

To determine the price per acre that Charlie paid for the lot, first, we need to calculate the total area of the lot in acres and then divide the purchase price by that area. The lot measures 800 ft. wide by 500 ft. long, resulting in an area of 400,000 square feet. Since one acre is equivalent to 43,560 square feet, the area in acres is approximately 9.19. Dividing the total purchase price of $850,000 by the area in acres yields a price per acre of $92,592.59.

A ($1,360) YOUR ANSWER

This value does not accurately represent the price per acre. It suggests a much lower total area than the actual 9.19 acres calculated. The incorrect area would lead to a misleading price per acre, as the total price of $850,000 cannot be divided by such a small area to yield this figure.

B ($1,062.50) YOUR ANSWER

This option also misrepresents the price per acre. It implies an area of approximately 800 acres, which is significantly larger than the actual area of 9.19 acres. This discrepancy indicates that the calculation does not align with the actual dimensions of the lot.

C ($0.47) YOUR ANSWER

The price of $0.47 per acre is far too low for any real estate transaction. Dividing the total purchase price of $850,000 by the actual area of 9.19 acres yields a much higher price per acre. This choice reflects an unrealistic value that does not fit any reasonable calculation based on the provided lot dimensions.

D ($92,592.59) CORRECT

This is the correct calculation of the price per acre. Upon dividing the total cost of $850,000 by the area of 9.19 acres, we arrive at this accurate figure, which appropriately reflects the cost associated with each acre of the property purchased.

Conclusion

Charlie paid $92,592.59 per acre for the lot he purchased. The calculation involved determining the total area in acres and correctly dividing the total price by this area. The other options presented are incorrect due to miscalculations in area or unrealistic pricing, emphasizing the importance of accurate area conversion in real estate transactions.

Charlie purchased a lot that measures 800 ft. wide by 500 ft. long. The purchase price was $850,000. What was the price Charlie paid per ACRE?

$92,592.59

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