Question

A lot that measures 40 feet by 100 feet and sells for $2 per square foot, with a premium of $5 per front foot, would sell for

A) $28,000.
B) $8,200.
C) $1,960.
D) $8,000.

Answer 1

The lot would sell for $8200.

Step-by-step explanation:

To find the price at which the lot would sell, we need to calculate the total price of the lot by multiplying its area by its price per square foot. The area of the lot is 40 feet by 100 feet, which is 4000 square feet. The price per square foot is $2, so the total price of the lot is $2 * 4000 = $8000.

In addition, there is a premium of $5 per front foot. The lot has a frontage of 40 feet, so the additional cost due to the premium is $5 * 40 = $200.

Therefore, the total selling price of the lot would be $8000 + $200 = $8200.