Tommy owns 4.5 acres of land for which he paid $200,000. Ken owns the lot adjacent to Tommy; and needs room to build a chicken shed on his property, and wants to buy a strip of Tommy’s land measuring 250 feet by 100 feet. How much would Ken pay for this strip of land if Tommy sells it for the same price he originally paid? (Round your answer to the nearest dollar.) a. $25,500 b. $28,696 c. $24,495 d. $24,503
The steps in this calculation are as follows: Step One: Calculate the square footage of Tommy’s land: 4.5 x 43,560 = 196,020 square feet of land. Step Two: Calculate the price per square foot that Tommy originally paid: $200,000 ÷ 196,020 = $1.02. Step Three: Calculate the square footage of the strip of land Ken wants to purchase from Tommy: 250 x 100 = 25,000 square feet. Step Four: Calculate how much Ken would pay for 25,000 square feet of land at $1.02 per square foot: 25,000 x $1.02 = $25,500.
