A broker decided to sell a lot he owned, which was 60 feet by 120 feet, for the price of 10 dollars per square foot.
The purchaser would assume a paving lien of 25 dollars per front foot.
What price would the purchaser have to ask for the lot if he wanted to sell it at a profit of 1500 dollars and give a clear title to the lot ?
The answer is below the wildlife photo. Please take your time.
A. $10,200
Let's multiply 60 times 120 to get a total of 720 square feet of lot.
Now let's find the cost of the lot per square foot by multiplying 720 times 10 dollars and we get a totai of 7,200 dollars.
If the purchaser has a paving lien of 25 dollars per front foot multiply 60 times 25 for a total of 1500 dollars.
Now add 7200 plus 1500 plus 1500 and we have a total of 10,200 dollars which is what the purchaser would have to sell the lot for to meet his objective.
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