Seller Alvarez wants to sell 3 sections of land he bought a few years ago. Seller Alvarez already sold a parcel of land to buyer Lee that’s 175 x 175 ft for $5,000. Assuming that Seller Alvarez wants to earn the same rate per square foot that he earned from the sale of land to Buyer Lee, approximately how much should he sell 2 sections for?
Let’s do the math.
175*175 is 30,625 sq ft. which went for $5000. So, per square foot, the rate that Seller Alvarez earned here is going to be $5000/30,625, which is $.1632, or about 16 cents per square foot.
Here, you must also know that 1 section is 640 acres, and there is 43,560 square feet in an acre. So, how many square feet are there in 1 section? Doing the math – 1 section is 640 acres * 43560 square feet/acre, which comes out to 27,878,400 square feet/section.
Since there are 2 sections, he is selling 2 * 27,878,400 square feet, which equals 55,756,800 square feet of total land that he is selling.
So we know that Seller Alvarez desires a rate of $.1632 per square foot, which means that he will want to sell at $.1632 * 55,756,800, which is equal to $9,099,509.76 – which means C is the closest answer.