Question

The Randolph family pays $1,590 per month to rent a two-bedroom home. They are planning to buy a new home and make monthly payments of $2,380 per month. If thecost of moving is $375, find their additional costs for housing the first year.$8,766$10,124$7,998$9,855None of these choices are correct.

Answer 1

The cost spent on the rented two-bedroom apartment is $1,590 per month

In a year, the rent amounts to 1590 x 12 = $19,080

Cost to be used to buy a new home is estimated below;

Monthly payment = $2,380

In a year, that amounts to 2380 x 12 = $28,560

Cost of moving = $375

Total cost spent on buying the new house = 28560 + 375 = $28,935

Therefore, the additional cost for housing the first year = 28,935 - 19,080

Extra cost = $9,855