Question

review the rental and purchase property information to answer the question: calculate the difference in total move-in cost between the two properties. $31,497.35 $35,842.95$39,285.45$4,976.55

Answer 1

Let us calculate the move-in costs of both properties.

Rental Property

The monthly rent is $1,350.

The move-in costs are:

First month = $1,350

Last month = $1,350

Security deposit = 55% of one month's rent

`\Rightarrow(55)/(100)*1350=742.5`

Therefore, the move-in cost is:

`\Rightarrow1350+1350+742.5=3442.5`

Purchase Property

The purchase price is $195,450.

The move-in costs are:

Down payment of 18% of purchase price:

`\Rightarrow(18)/(100)*195450=35181`

Closing costs of 2.1% of purchase price:

`\Rightarrow(2.1)/(100)*195450=4104.45`

Therefore, the move-in cost is:

`\Rightarrow35181+4104.45=39285.45`

Difference in Total Move-In Cost

This is calculated to be:

`\Rightarrow39285.45-3442.5=35842.95`

ANSWER

The difference in total move-in cost is $35,842.95