68. Two parcels of land priced at $2,100 per acre were purchased. One parcel was 5 acres in size, and the other was 1 square mile in size. How much should these two parcels have cost together?
Answer: C
The total cost of the two parcels should be $1,060,500.
To determine the combined cost of the parcels, we first convert the size of the square mile parcel into acres. One square mile is equivalent to 640 acres. Therefore, the cost of the 5-acre parcel is $2,100 multiplied by 5, and the cost of the 640-acre parcel is $2,100 multiplied by 640. Adding these two amounts gives us the total cost.
A) $766,000
This option is incorrect. Calculating the cost of the 5-acre parcel at $2,100 per acre results in $10,500. The cost for the 640-acre parcel is $1,344,000. Together, they total $1,354,500, which is higher than this option.
B) $914,760
This option is incorrect. The cost of the 5-acre parcel is $10,500, and the cost of the 640-acre parcel is $1,344,000. When combined, these amounts total $1,354,500, which significantly exceeds the value presented in this option.
C) $1,060,500
This option is incorrect. After calculating the individual costs of the parcels, the total cost is actually $1,354,500. Thus, this amount does not reflect the correct total.
D) $1,354,500
This option is correct. The cost of the 5-acre parcel is $10,500, and the cost of the 640-acre parcel is $1,344,000. When these two amounts are summed, they equal $1,354,500, which accurately reflects the total cost of both parcels.
Conclusion
The correct total cost of the two parcels is $1,354,500, as calculated from their respective sizes and price per acre. All other options do not reflect the correct calculations based on the acre pricing and parcel sizes, confirming that they are incorrect.