A vacant lot sold for $184,000 and measures 80 by 115 feet. Its price per square foot is:
Correct Answer
D) $20.00 per square foot
Why this is correct: First, calculate the lot area: 80 feet * 115 feet = 9,200 square feet. Then, divide the sale price by the area: $184,000 / 9,200 sq ft = $20.00 per square foot. Why the other choices are wrong: "$18.40 per square foot" might come from dividing price by 10,000 (a common mistake). "$16.00 per square foot" could be from using perimeter or incorrect dimensions. "$23.00 per square foot" might come from dividing price by 8,000. Exam tip: Price per unit = Total Price / Total Units (e.g., sq ft, acre). Always verify the area calculation first.
Why This Is the Correct Answer
Why this is correct: First, calculate the lot area: 80 feet * 115 feet = 9,200 square feet. Then, divide the sale price by the area: $184,000 / 9,200 sq ft = $20.00 per square foot. Why the other choices are wrong: "$18.40 per square foot" might come from dividing price by 10,000 (a common mistake). "$16.00 per square foot" could be from using perimeter or incorrect dimensions. "$23.00 per square foot" might come from dividing price by 8,000. Exam tip: Price per unit = Total Price / Total Units (e.g., sq ft, acre). Always verify the area calculation first.
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