Question 79

Charlie paid $92,592.59 per acre.

To determine the price per acre, we first calculate the total area of the lot in acres. The area is 800 ft. wide by 500 ft. long, which equals 400,000 square feet. Since one acre is equal to 43,560 square feet, the lot is approximately 9.17 acres. Dividing the purchase price of $850,000 by the number of acres gives a price of $92,592.59 per acre.

A) $1,360

This option is incorrect as it suggests a price per acre that is far too low compared to the actual calculation. The price per acre is derived from dividing the total purchase price by the total area in acres, and this value is significantly higher than $1,360.

B) $1,062.50

This option also does not reflect the correct price per acre. While it is closer than option A, it remains an incorrect calculation, as the actual price per acre derived from the total price and area is much higher than $1,062.50.

C) $0.47

This option is incorrect as it indicates an unrealistically low price per acre. The calculation of $0.47 per acre does not align with the total purchase price and area of the lot, which results in a much higher value.

D) $92,592.59

This option is correct. By calculating the total area of the lot in acres (9.17 acres), and dividing the total purchase price of $850,000 by this number, we confirm that Charlie effectively paid $92,592.59 per acre.

Conclusion

The correct calculation of the price per acre shows that Charlie paid $92,592.59, making option D the definitive correct answer. All other options present incorrect figures based on the area and total price, highlighting the importance of precise calculations in determining real estate costs.