Diana owns 52 acres of forest land in oregon. She rents it to a timber grower for $230 per acre per year.

Question

Diana owns 52 acres of forest land in oregon. She rents it to a timber grower for $230 per acre per year. Her property taxes are $38 per acre. How much profit does she make on the land each year?

Answer 1

Good Afternoon, Teawana,

To solve this problem, you want to calculate the rental revenue Diana makes by multiplying the 52 acres of land by the rental fee she charges her tenant in the amount of $230.00. Once we calculate that information, we can multiply Diana's property taxes in the amount of $38.00 by the number of acres she owns (52 acres), and then subtracting that number from the first calculation. 


So, let's proceed here. 

Diana's rental income due to her earning $230.00 by 52.

230.00
x     52
--------
$11,960

Diana's property tax which is $38.00 per rented acre. 

38.00
x   52
-------
$1976.00

Now, we take the first calculation of $11,960 and subtract the $1976.00 which will give us the profit earned on this rental property. 

$11,960
-  1,976
---------
$9984.00 profit Diana made on this land each year. 

I hope this assisted you and that you have a great day today. If you have feedback, or additional questions, please feel free to leave that information below this answer in the comment section. If you need further assistance, feel free to reach out to any tutor. 

Best!