A building permit application fee is $1,850 plus $3.25 per $1,000 of construction value. If the project value is $485,000, what is the total permit fee?
Correct Answer
A) $3,426.25
Construction value fee: $485,000 ÷ $1,000 = 485 units. 485 × $3.25 = $1,576.25. Total fee: $1,850 + $1,576.25 = $3,426.25.
Why This Is the Correct Answer
The calculation correctly applies the two-part fee structure: a base fee plus a variable fee based on construction value. First, the construction value is divided by $1,000 to determine the number of units (485), then multiplied by the per-unit rate ($3.25) to get $1,576.25. This variable fee is added to the base fee of $1,850 for a total of $3,426.25.
Why the Other Options Are Wrong
Option B: $3,425.00
This answer ($3,425.00) is $1.25 too low, likely from a rounding error or miscalculation in the variable fee portion of the permit cost calculation.
Option C: $3,427.50
This answer ($3,427.50) is $1.25 too high, possibly from rounding the construction value incorrectly or making an arithmetic error in the multiplication step.
Option D: $3,430.00
This answer ($3,430.00) is $3.75 too high, suggesting a significant calculation error, possibly in determining the number of $1,000 units or in the final addition.
Memory Technique
Remember 'Base + Variable = Total' - always identify the fixed base fee first, then calculate the construction value portion separately before adding together
Reference Hint
Florida Building Code, Chapter 1 - Scope and Administration, Section 105 (Permits) for fee structures and calculations
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