Question

The home for sale is listed at $150,000.00. They have $30,000.00 for a down payment and are qualified for a fixed rate 30-year mortgage with an annual interest rate of 4.2%.
The rental home is currently $900.00 per month, with rent expected to increase approximately $75.00 every 4 years.

What is the total first-year cost when renting the home?
a. 10,800.00
b. 11,400.00
c. 11,200.00
d. 900.00

Answer 1

• Total price=$150000
• Rental price is $900 per month
• The rate will increase in annual rate of 4.2%
• First year no increase in interest.

Annual rent of first year

$\\ \sf\longmapsto 900(12)$

$\\ \sf\longmapsto 10800$

Answer 2

It is a hope it helps