Hawaii Pre-Licensing National Practice Exam

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Prepare for the Hawaii Pre-Licensing National Exam. Study with flashcards and multiple choice questions, each question provides hints and explanations. Get ready for success!

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A contract calls for the buyer to pay $65,000 for a house and one acre of land, plus $5,000 for each additional acre of land. If the survey reveals a total land area of 4.3 acres, what is the total amount to be paid for the house and land?

$70,000
$75,500
$81,500
$85,000

The correct answer is: $81,500

To determine the total amount to be paid for the house and land, we start with the fixed price for the house and the first acre of land, which is $65,000. Then, we need to calculate the cost for the additional acres based on the total land area revealed by the survey. In this case, the property has a total land area of 4.3 acres. Since the buyer pays for the first acre with the house price, we need to calculate the cost for the additional 3.3 acres (which is 4.3 - 1). Each additional acre is valued at $5,000. Therefore, for 3.3 additional acres, the calculation would be: 3.3 acres × $5,000 per acre = $16,500. Next, we add this amount to the initial cost of the house and the first acre of land: $65,000 (for the house and first acre) + $16,500 (for the additional 3.3 acres) = $81,500. The total amount to be paid for the house and 4.3 acres of land is therefore $81,500, making this the correct answer.