California Real Estate Practice Exam

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You wish to purchase 2 acres of property for which you will pay up to $1.13 per square foot. What would the maximum purchase price be?

$87,650
$49,222.80
$98,445.60
$984,456

The correct answer is: $87,650

To determine the maximum purchase price for the property based on the price per square foot and the area in acres, it's essential to first convert the acres into square feet. One acre is equivalent to 43,560 square feet. Therefore, to convert 2 acres into square feet: 2 acres × 43,560 square feet/acre = 87,120 square feet. Next, multiply the total square footage by the price per square foot: 87,120 square feet × $1.13 per square foot = $98,445.60. The calculated maximum price of $98,445.60 corresponds to the third option in the choices provided. In this case, the answer given as $87,650 does not match the calculated maximum price and hence cannot be deemed correct. The correct answer is $98,445.60, as calculated by using the correct conversion factor from acres to square footage and applying the price per square foot accordingly. The answer originally stated does not reflect this calculation, highlighting the importance of following the conversion and multiplication carefully to arrive at the accurate maximum purchase price.