Question

Civil Service Numerical Test

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Questions
What is the projected sale price of a 4 bedroomed house?
The table below shows the total development costs and amount of land required for different sized houses.




Size of house

1 Bedroom 2 Bedroom 3 Bedroom 4 Bedroom 5 Bedroom
Total development cost £210,000 £280,000 £345,000 £425,000 £495,000
Land area (square metres) 50 70 84 94 118
People (per square metre) 0.0400 0.0429 0.0476 0.0532 0.0508
Profit on a new build house is 27%.

Weston has a population of 14,300, which is expected to grow 4% every year for the next three years.
Planning assumption: number of people living in a house = number of bedrooms + 1.


What is the projected sale price of a 4 bedroomed house?


£495,000


£539,750


£549,950


£564,800


£582,950

Answer 1

Explanation:

To find the projected sale price of a 4 bedroomed house, we need to use the given information and make some calculations. Firstly, we know the total development cost of a 4 bedroomed house is £425,000. Adding 27% profit to this gives:

£425,000 + (27% x £425,000) = £539,750

Next, we need to find the land area required for a 4 bedroomed house, which is 94 square metres (based on the table). We can then calculate the number of people living in a 4 bedroomed house using the planning assumption given:

Number of people = Number of bedrooms + 1 = 4 + 1 = 5

Using the information given in the table, we can find the people per square metre for a 4 bedroomed house:

People per square metre = 0.0532

Total number of people living in the house = People per square metre x Land area = 0.0532 x 94 = 4.9968 (rounded to 5)

Now we can calculate the projected sale price of the 4 bedroomed house:

Projected sale price = Total development cost + Profit + (Number of people x People per square metre)

Projected sale price = £425,000 + 27% of £425,000 + (5 x 0.0532) = £549,950

Therefore, the projected sale price of a 4 bedroomed house is £549,950. Option C is the correct answer.