Question

A land developer is dividing 20 acres of land into 2 5 of an acre lots. If each lot is sold for $15,000, what is the total value of the 20 acres?

Answer 1

50 lots is the answer

Answer 2

The total value of the 20 acre land is:

$ 750,000

Explanation:

The total area of the land is: 20 acres.

Also, the land is divided into 2/5 of an acre lot.

This means that the total number of lot that can be obtained is:

Total area/Area of 1 lot

i.e.

Number of lot= 20/(2/5)

i.e.

Number of lots= 50

Also, cost of 1 lot = $ 15,000

This means that the cost of 50 lots will be: $ (15,000×50)

i.e.

cost of 50 lots= $ 750,000

Hence, cost of total land=cost of 50 lots

i.e.

Total cost of 20-acre land= $ 750,000