Twenty members of a group contributed sh 80000 each to buy a piece of land. They already had sh 120000 in a bank out of which sh 20000 was to remain in the bank and the rest spent in buying the price of land. How much did the piece of land cost?
Twenty members of a group contributed sh 80000 each
means
contribution from members
= 20 members * 80000
=sh 1600000
They already had sh 120000 in a bank out of which sh 20000 was to remain
means
from bank reserve
= 120000 - 20000
= sh 100000
Price of land
= sum of contributions and reserve
= 1600000+100000
= sh 1700000
To find the cost of the piece of land, we need to perform a calculation using the given information.
First, let's calculate the total amount of money available for purchasing the land. We know that 20 members contributed sh 80000 each, so the total contribution can be calculated as follows:
Total contribution = 20 members × sh 80000/member
Total contribution = sh 1600000
Next, we need to consider the amount of money in the bank. It is given that there was sh 120000 in the bank, out of which sh 20000 should remain in the bank. Therefore, the amount available for purchasing the land from the bank is:
Amount available from the bank = sh 120000 - sh 20000
Amount available from the bank = sh 100000
We can now calculate the cost of the piece of land by adding the total contribution from the members and the amount available from the bank:
Cost of the land = Total contribution + Amount available from the bank
Cost of the land = sh 1600000 + sh 100000
Cost of the land = sh 1700000
Therefore, the piece of land costs sh 1700000.