Bob rented a farm and agreed to pay $800 in cash plus a fixed number of bushels of wheat as the yearly rental for his farm. That, he explained, would amount to $70 an acre when wheat was worth 0.75 cents a bushel. Since wheat is now worth $1 a bushel, he must pay $80 an acre, which he thought was too much. What is the size of Bob's farm? Thanks for help.
This problem looks familiar. It may have been posted before. However, the solution is relatively easy, if we use a bit of logic. It goes like this:
$1 - $0.75 =$0.25 Difference in price per bushel makes a difference of:
$80 - $70 =$10 an acre in rent. Therefore, the rent paid in wheat is: $10 / $0.25 =40 bushels per acre.
40 bushels x $1 =$40. So that the rent per acre paid in cash would be:
$80 - $40 =$40 per acre. Hence, the number of acres is:
$800 / $40 =20 acres - the size of Bob's farm.