QuestionA 40-acre tract sold for \$2,200 per acre. If profit was 14.5%, what was the original cost? Options: \$75,240, \$76,856, \$100,760, \$102,924.
Studdy Solution
STEP 1
Assumptions1. The tract was sold for \$,200 per acre. The total area of the tract is40 acres3. The profit was14.5\% of the sale price4. We need to find the original cost of the tract
STEP 2
First, we need to find the total sale price of the tract. We can do this by multiplying the sale price per acre by the total number of acres.
STEP 3
Now, plug in the given values for the price per acre and total acres to calculate the sale price.
STEP 4
Calculate the total sale price.
STEP 5
Now that we have the sale price, we can find the profit. The profit is14.5\% of the sale price.
STEP 6
Convert the profit rate from a percentage to a decimal.
STEP 7
Plug in the values for the sale price and the profit rate to calculate the profit.
STEP 8
Calculate the profit.
STEP 9
Now that we have the profit, we can find the original cost of the tract. The original cost is the sale price minus the profit.
STEP 10
Plug in the values for the sale price and the profit to calculate the original cost.
STEP 11
Calculate the original cost.
The original cost of the tract was \$75,240.
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