A building permit fee calculation includes a base fee of $125 plus $0.75 per square foot for a 4,200 square foot residence. Additionally, there is a 3% processing fee on the total. What is the final permit cost?
Correct Answer
D) $3,372.25
Base fee: $125. Square footage fee: 4,200 × $0.75 = $3,150. Subtotal: $125 + $3,150 = $3,275. Processing fee: $3,275 × 0.03 = $98.25. Total: $3,275 + $98.25 = $3,373.25.
Why This Is the Correct Answer
Option D correctly follows the three-step permit fee calculation process. First, calculate the square footage fee (4,200 × $0.75 = $3,150), then add the base fee ($125 + $3,150 = $3,275), and finally apply the 3% processing fee ($3,275 × 0.03 = $98.25) for a total of $3,373.25. This systematic approach ensures all fee components are properly included in the final calculation.
Why the Other Options Are Wrong
Option A: $3,400.00
This amount is far too high and doesn't follow any logical calculation sequence for the given parameters.
Option B: $3,502.00
This amount appears to include some components but doesn't properly account for all fees in the correct sequence.
Option C: $3,275.00
This represents only the subtotal before the 3% processing fee is applied ($125 base + $3,150 square footage fee), missing the final processing fee calculation.
Memory Technique
Remember 'BPS' - Base fee + Per square foot fee = Subtotal, then add Processing fee. Always calculate percentage fees on the subtotal, not individual components.
Reference Hint
Florida Building Code Chapter 1 - Scope and Administration, Section 105 (Permits) for fee structures and calculations
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