Question 6

The total cost of the two parcels should be $1,364,500.

To determine the total cost of the two parcels, we first calculate the cost of each parcel individually and then sum them. The 5-acre parcel costs $10,500, and the 1 square mile parcel, which is 640 acres, costs $1,360,000. Together, they total $1,364,500.

A) $766,000

This option incorrectly calculates the total cost. The combined price of the two parcels far exceeds this amount. The cost of the 5-acre parcel alone is $10,500, and the cost of the 1 square mile parcel is $1,360,000, making this option substantially lower than the actual total.

B) $914,760

This amount does not accurately reflect the cost of the parcels. The 5-acre parcel costs $10,500, and the 1 square mile parcel costs $1,360,000, leading to a total that is significantly higher than $914,760. Thus, this option is also incorrect.

C) $1,060,500

This option fails to account for the correct area of the second parcel. The cost of the 5-acre parcel is $10,500, and the 1 square mile parcel costs $1,360,000. The sum of these costs is much greater than $1,060,500, indicating that this option is not valid.

D) $1,364,500

This option is the correct total cost for both parcels. The 5-acre parcel costs $10,500 while the 1 square mile parcel, which is 640 acres, costs $1,360,000. Summing these amounts gives a total of $1,364,500, confirming this choice as accurate.

Conclusion

The correct total cost of $1,364,500 accurately reflects the pricing for both parcels when calculated correctly. Options A, B, and C all underestimate the cost, failing to incorporate the full area and pricing of the second parcel, thus confirming D as the only valid answer.