Question 79

Charlie paid $92,592.59 per acre.

To determine the price Charlie paid per acre, we first calculate the total area of the lot in acres. The lot measures 800 ft. wide by 500 ft. long, giving an area of 400,000 square feet. Since one acre is equal to 43,560 square feet, the total area in acres is approximately 9.2 acres. Dividing the total purchase price of $850,000 by the number of acres yields approximately $92,592.59 per acre.

A) $1,360

This option is incorrect as it significantly underestimates the price per acre. If we were to assume this price per acre, the total cost would only be $12,5120.00 for what would amount to approximately 92.5 acres, which does not align with the given purchase price of $850,000.

B) $1,062.50

This option is also incorrect. At $1,062.50 per acre, Charlie would have paid around $9,720,000 for the entire lot, which is far above the actual purchase price of $850,000. Hence, this option is not a valid calculation based on the information provided.

C) $0.47

This option is incorrect as it greatly underestimates the price per acre. A price of $0.47 per acre would suggest a total cost of only $4.31 for the entire lot, which is not reasonable given the purchase price of $850,000.

D) $92,592.59

This option is correct as calculated from the purchase price divided by the total area in acres. With a total lot area of approximately 9.2 acres, the division of $850,000 by 9.2 acres results in $92,592.59 per acre, accurately reflecting the price paid.

Conclusion

The correct answer is $92,592.59 per acre, as it is the only option that accurately reflects the division of the total purchase price by the total area in acres. All other options fail to align with the calculations based on the provided dimensions and price, leading to unrealistic values that do not represent a correct price per acre.