Question

Janet and Chrissy want to move into an apartment near their school. They have agreed to divide all costs equally. They plan to use a broker to find their apartment. The broker charges 20% of the first month's rent as a finder's fee. Their first choice apartment rents for $850.00 per month. The landlord requires the first month's rent plus a security deposit of 1.5 month's rent. How much money will Janet need in order to move in to this apartment?

Answer 1

Answer: $1147.50

Explanation:

Monthly apartment fee = $850

Broker's charge = 20% of first month fee

Security deposit = 1.5 months rent

Therefore,

Broker's fee = 20% × $850

= 0.2 × $850 = $170

Security deposit = 1.5 × $850 =$1275

Total fee = $850 + $1275 + $170 = $2295

Since Chrissy and Janet are sharing the fee equally:

Janet's share :

50% of $2295 = $1147.50