A commercial development project requires multiple permits with the following fees: Building permit $45,000, Site development permit $12,500, Environmental permit $8,200, and Electrical permit $3,800. If the jurisdiction offers a 5% discount for paying all permits simultaneously, what is the total cost?
Correct Answer
C) $66,125
Total permit fees are $45,000 + $12,500 + $8,200 + $3,800 = $69,500. With a 5% discount: $69,500 × 0.95 = $66,125.
Why This Is the Correct Answer
The correct answer systematically adds all four permit fees to get the base total, then applies the 5% discount for simultaneous payment. First, we calculate $45,000 + $12,500 + $8,200 + $3,800 = $69,500. Then we apply the 5% discount by multiplying by 0.95 (which represents paying 95% of the original cost). This gives us $69,500 × 0.95 = $66,125.
Why the Other Options Are Wrong
Option A: $72,975
This amount ($69,975) suggests an incorrect calculation that doesn't properly apply the 5% discount to the total permit fees.
Option B: $69,975
This represents the total permit fees before applying the 5% discount ($69,500), but fails to account for the cost savings from paying all permits simultaneously.
Memory Technique
Remember 'BSEE' for the four common commercial permits: Building, Site development, Environmental, Electrical. For discounts, think '95 cents on the dollar' for a 5% discount.
Reference Hint
Florida Building Code Chapter 1 - Administration and Enforcement, specifically sections on permit fees and payment procedures
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