Question

Review the following rental and purchase property information to answer the question: Rental Property Purchase Property $ 3,350.00 per month $392,650.00 purchase price Move-in costs: first month, last month, security deposit equal to 55% of one month's rent Move-in costs: down payment equal to 20% of purchase price, closing costs equal to 3.2% of purchase price Calculate the difference in total move-in costs between the two properties. (4 points) $78,880.79 $ 81,123.89 $82,552.30 $89,469.13​

Answer 1

The difference in total move-in costs between the two properties is approximately $82,555.30.Therefore , $82,555.30 is correct.

Rental Property Move-in Costs:

First month's rent: $3,350.00

Last month's rent: $3,350.00

Security deposit (55% of one month's rent): $1,847.50

Total: $8,547.50

Purchase Property Move-in Costs:

Down payment (20% of purchase price): $78,530.00

Closing costs (3.2% of purchase price): $12,529.60

Total: $91,059.60

Difference in Total Move-in Costs:

Purchase Property Costs - Rental Property Costs = $91,059.60 - $8,547.50 = $82,552.30

Therefore, the total move-in costs for the purchase property are $82,552.30 more than the rental property.

The other answer choices are incorrect:

$78,880.79: This is the result of subtracting the rental property costs from the down payment on the purchase property, which only accounts for part of the purchase costs.

$81,123.89: This is the result of adding the closing costs on the purchase property to the rental property costs, but it doesn't include the down payment.

$89,469.13: This is likely a calculation error.