A contractor pulls a building permit valued at $485,000. The local jurisdiction charges permit fees at 0.65% of construction value. What is the permit fee?
Correct Answer
D) $3,152.50
The calculation is: $485,000 × 0.0065 = $3,152.50. Permit fees are often calculated as a percentage of the total construction value.
Why This Is the Correct Answer
Option A is correct because the permit fee is calculated by multiplying the construction value ($485,000) by the permit fee percentage (0.65% or 0.0065). This straightforward percentage calculation yields $3,152.50. Permit fees are typically calculated as a fixed percentage of the total construction value as established by local building departments.
Why the Other Options Are Wrong
Option A: $3,252.50
This answer ($3,252.50) is incorrect because it appears to be the result of using an incorrect percentage rate, possibly 0.67% instead of 0.65%, or a calculation error that added an extra $100 to the correct amount.
Option B: $3,152.75
This answer ($3,252.75) is incorrect because it combines both errors - using an incorrect percentage rate and adding extra cents, resulting in an amount that is $100.25 higher than the correct calculation.
Option C: $3,252.75
This answer ($3,152.75) is incorrect because it adds an extra $0.25 to the correct calculation, likely resulting from a rounding error or misplacing a decimal during the calculation process.
Memory Technique
Remember 'Percentage Problems: Move decimal Point twice to the left, then Multiply' - the three P's and M help you convert percentages correctly before calculating permit fees.
Reference Hint
Florida Building Code - Administrative provisions chapter covering permit fees and fee calculations, or local jurisdiction fee schedules typically found in municipal building department regulations.
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