A lot measures 120 feet by 180 feet. Comparable sites sell at $6.00 per square foot. What value is indicated?
Correct Answer
B) $129,600
Why this is correct: First, calculate the lot area: 120 feet * 180 feet = 21,600 square feet. Then, multiply by the price per square foot: 21,600 * 6.00 = 129,600. The indicated value is $129,600. Why the other choices are wrong: $108,000 results from an incorrect calculation (e.g., 120 * 180 * 5?). $144,000 might come from using perimeter or another miscalculation. $21,600 is the area in square feet, not the value, representing a failure to complete the final multiplication. Exam tip: For area calculations, always write out: length * width = area. Then: area * unit price = total value. Avoid skipping steps.
Why This Is the Correct Answer
Why this is correct: First, calculate the lot area: 120 feet * 180 feet = 21,600 square feet. Then, multiply by the price per square foot: 21,600 * 6.00 = 129,600. The indicated value is $129,600. Why the other choices are wrong: $108,000 results from an incorrect calculation (e.g., 120 * 180 * 5?). $144,000 might come from using perimeter or another miscalculation. $21,600 is the area in square feet, not the value, representing a failure to complete the final multiplication. Exam tip: For area calculations, always write out: length * width = area. Then: area * unit price = total value. Avoid skipping steps.
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