Real Estate Math

A NH property has 120 feet of frontage on a lake. Similar lakefront properties sell at a premium of $1,200 per linear foot of frontage over inland properties. What additional value does the lake frontage represent?

A$120,000
B$144,000✓ Correct
C$108,000
D$180,000

Explanation

Lake frontage premium = Frontage × premium per linear foot = 120 × $1,200 = $144,000. Using the values given ($1,200), apply the appropriate formula..

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