Aleisha wants to buy a condominium. She has the choice of buying it now or renting it with the option to buy at the end of 4 yea

Question

3 years ago

9

Aleisha wants to buy a condominium. She has the choice of buying it now or renting it with the option to buy at the end of 4 yea

rs. If she rents now, she must pay a deposit of $1,500 and pay rent of $865 per month. If she buys, she would need closing costs and her mortgage payment would be $844 a month for 4 years. How much would her closing costs need to be in order for the cost to buy to be the same as the cost to rent

Business

2 answers:

qaws [65] · Answer 1 · 2022-06-02T09:18:38+03:00

qaws [65]3 years ago

3 0

Answer:

$2,508 is the correct answer.

Explanation:

julsineya [31] · Answer 2 · 2022-06-02T10:32:23+03:00

<h2>Answer:</h2><h2></h2><h2>correct option is b. $2,508</h2><h2></h2><h2>Step-by-step explanation:</h2><h2></h2><h2>given data</h2><h2></h2><h2>for rent deposit = $1,500</h2><h2></h2><h2>rent = $865 per month</h2><h2></h2><h2>time = 4 year</h2><h2></h2><h2>mortgage payment = $844</h2><h2></h2><h2>to find out</h2><h2></h2><h2>How much would her closing costs need to order for the cost to buy to same as cost to rent</h2><h2></h2><h2>solution</h2><h2></h2><h2>first we get here Total payment by monthly payment for 4 year rent is</h2><h2></h2><h2>Total payment = $865 × 4 year × 12 months</h2><h2></h2><h2>Total payment for rent = $41520</h2><h2></h2><h2>and so the total amount pay in rent is</h2><h2></h2><h2>total amount pay in rent = Amount deposited + Total payment ..............1</h2><h2></h2><h2>total amount pay in rent = $1500 + $41520</h2><h2></h2><h2>total amount pay in rent = $43020</h2><h2></h2><h2>and</h2><h2></h2><h2>now we get total payment by monthly payment for 4 year when buy</h2><h2></h2><h2>total payment = $844 × 4 year × 12 months</h2><h2></h2><h2>total payment for buy = $40512</h2><h2></h2><h2>and now we consider here closing costs for buying = x</h2><h2></h2><h2>so</h2><h2></h2><h2>total amount pay in buy = total payment + closing costs ..............2</h2><h2></h2><h2>total amount pay in buy = $40512 + x</h2><h2></h2><h2>so here cost to buy to be same as cost to rent so</h2><h2></h2><h2>$40512 + x = $43020</h2><h2></h2><h2>x = $2508</h2><h2></h2><h2>so here closing costs will be $2508</h2><h2></h2><h2>so correct option is b. $2,508</h2><h2></h2><h2>:</h2>