From news reports, you discover that the city of Allen, TX just built a new stat

Question

From news reports, you discover that the city of Allen, TX just built a new state-of-the-art stadium for high school football, and that new stadium cost $9,300 per high school student. If the city index for Allen, TX is 118.9 and for Bemidji, MN it is 90.2, approximately how much would it cost to build a similar replacement for Chet Anderson Stadium for the 6,400 students at BSU?

Question 1 options:

$78 million dollars

$60 million dollars

$45 million dollars

$78 million dollars

$60 million dollars

$45 million dollars

Explanation / Answer

Construction cost index = (Current price / base price ) x 100

In TX index is 118.9

Current price = 9300 $

So by substituting the index in above formula the base price cn be known

118.9 = (9300/ base price ) x 100

Base price = 7822 $

So in MN the current price using index 90.2

90.2 = (Current price / 7822 ) x 100

Base price = 7055 $

So the total amount required to build a replacement stadium for 6400 students is = 7055 x 6400

Total amount = 45152000$ = 45.15 million dollars

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