Question

In 1948, five people bought about 66 acres of land for $424 per acre. In 1967, the same 66 acres were sold for $15,787.25 per acre. What was the percentage rate of markup on the acres from 1967 to 2013?

a) 369%
b) 3,721%
c) 3,612%
d) 37.2%

Answer 1

To find the percentage rate of markup on the acres from 1967 to 2013, calculate the markup rate for each acre and then calculate the overall markup percentage.

Step-by-step explanation:

To find the percentage rate of markup on the acres from 1967 to 2013, we need to calculate the percentage increase in price per acre over that time period.

First, we find the markup rate for each acre:
Markup rate = (Selling price - Buying price) / Buying price * 100%
Markup rate = ($15,787.25 - $424) / $424 * 100%
Markup rate = $15,363.25 / $424 * 100%
Markup rate = 3625%

Next, we can use the markup rate to calculate the overall markup percentage:
Overall markup percentage = Markup rate * Number of acres
Overall markup percentage = 3625% * 66 acres
Overall markup percentage = 239550%
So, the percentage rate of markup on the acres from 1967 to 2013 is 3,612%.