Question

Wilfred and Fiona Lowell plan to rent an apartment for $475 a month.The security deposit is one month's rent. They estimate that annual expenses will be insurance, $220; utilities, $1,789; and lost interest, $20.

Answer 1

Answer: The Lowells will need to find an apartment that costs $475 a month or less. They will also need to pay a security deposit of $475, which will bring their total move-in cost to $950. The Lowells estimate that their annual expenses will be $220 for insurance, $1,789 for utilities, and $20 for lost interest. This brings their total annual expenses to $2,029. The Lowells will need to earn at least $1,683 per month to cover their rent and expenses.

Here is a breakdown of the Lowells' monthly expenses:

* Rent: $475

* Security deposit: $475

* Insurance: $220

* Utilities: $1,789

* Lost interest: $20

* Total: $2,029

The Lowells can save money by finding a cheaper apartment, or by making changes to their budget. For example, they could:

* Find an apartment that costs less than $475 per month.

* Pay a lower security deposit.

* Get a roommate to help with the rent.

* Shop around for insurance and utilities.

* Redirect their lost interest into a savings account.

Explanation: