California Real Estate Practice Exam

An investor group sold a parcel of land for $217,500, which was 45% more than they paid for it. What was the original price they paid per acre for the property described as N½ of the NW¼ of the SE¼ of Section 13 plus the W½ of the NE¼ of Section 13?

1. $1,000

2. $1,200

3. $1,500

4. $750

The correct answer is: $1,000

To determine the original price per acre that the investor group paid for the land, we first need to calculate the original price based on the selling price and the percentage increase. The selling price was $217,500, which represents 145% of the original price (100% + 45% increase). To find the original price, we can set up the following equation: Let the original price be represented as X. Thus, we have: 145% of X = $217,500. To find X, we convert 145% to a decimal, which is 1.45, and then rearrange the equation: X = $217,500 / 1.45. Calculating this gives: X = $150,000. This figure represents the original total price paid for the land. Next, we need to determine the size of the parcel described. The property in question is described as N½ of the NW¼ of the SE¼ of Section 13 plus the W½ of the NE¼ of Section 13. To simplify this: 1. The total area of a section is 640 acres (since there are 16 quarter-sections in a section). 2. N½ of the NW¼ of the SE¼