A building permit application is submitted for a $75,000 residential addition in Hawaii. The permit fee is calculated at 0.8% of the construction value. What is the permit fee?
Correct Answer
B) $600
$75,000 × 0.008 = $600 permit fee.
Why This Is the Correct Answer
$75,000 × 0.008 = $600. Converting 0.8% to a decimal gives 0.008. Multiplying the construction value by this decimal yields the permit fee of $600.
Why the Other Options Are Wrong
Option A: $750
$750 results from applying a 1% rate (0.01 × $75,000 = $750) instead of the stated 0.8% rate. This is the most common error — rounding up the percentage.
Option C: $500
$500 results from applying a 0.667% rate, which does not correspond to any standard calculation from the given figures. It may result from dividing incorrectly or misreading the percentage.
Option D: $800
$800 results from applying approximately 1.07% — another incorrect rate. It could also stem from a decimal placement error (e.g., treating 0.8% as 0.08 × $10,000 = $800, incorrectly scaling the base).
Memory Technique
Percentage to decimal rule: move the decimal point two places to the left. 0.8% → 0.008. Then multiply: $75,000 × 0.008. Break it down: $75,000 × 0.001 = $75; $75 × 8 = $600.
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