Answered

BA private developer bought this piece of land at a price of Ksh 400,000 per hectare and later sold the
all land at 2.25 million shillings. Determine;
(i)
The price at which he bought the whole piece of land
(ii)
His percentage profit
(2marks)
(2marks)

Verified Answer :

GinnyAnswer

Certainly! Let's determine the required values step-by-step:

(i) The price at which he bought the whole piece of land

1. Given that the price per hectare is Ksh 400,000,
2. The total purchase price for the whole piece of land is directly stated to be Ksh 400,000.

So, the total purchase price of the whole piece of land is:
\(\[ \text{Total purchase price} = \text{Ksh} 400,000 \]\)

(ii) His percentage profit

1. The selling price of the land is Ksh 2,250,000.
2. To find the profit, subtract the purchase price from the selling price:
\(\[ \text{Profit} = \text{Selling price} - \text{Purchase price} \]\)
\(\[ \text{Profit} = \text{Ksh} 2,250,000 - \text{Ksh} 400,000 \]\)
\(\[ \text{Profit} = \text{Ksh} 1,850,000 \]\)

3. To find the percentage profit, use the formula:
\(\[ \text{Percentage profit} = \left( \frac{\text{Profit}}{\text{Purchase price}} \right) \times 100 \]\)
\(\[ \text{Percentage profit} = \left( \frac{1,850,000}{400,000} \right) \times 100 \]\)
\(\[ \text{Percentage profit} = 462.5\% \]\)

So, his percentage profit is:
\(\[ 462.5\% \]\)

In summary:
1. The price at which he bought the whole piece of land is Ksh 400,000.
2. His percentage profit is 462.5%.

Related Questions