A land developer is dividing 20 acres of land into 2/5 of an acre lots. If each lot is sold for $15,000, what is the total value of the 20 acres?
A. $1,000,000
B. $250,000
C. $375,000
D. $500,000
E. $750,000
C. $375,000
To calculate the total value, we first need to determine how many lots can be created from 20 acres. Since each lot is 2/5 of an acre, we can create 20 / (2/5) = 20 / 0.4 = 50 lots.
Each lot is sold for $15,000, so the total value of the 20 acres is 50 lots * $15,000 = $750,000.
Therefore, the correct answer is $750,000.