Question

Teresa rents her apartment for ​$860860 per​ month, utilities not included. When she moved​ in, she paid a ​$700700 security deposit using money from her savings account that was paying 33​% interest. Her​ renter's insurance costs her ​$8484 per year. What are​ Teresa's total annual costs of​ renting? ​Teresa's total annual costs of renting are ​$nothing. ​(Round to the nearest​ cent.)

Answer 1

$10,425

Explanation:

The computation of total annual costs of renting is shown below:-

Total annual costs of renting = Annual cost of rent + Annual insurance cost + Interest lost

= ($860 × 12) + $84 + ($700 × 3%)

= $10,320 + $84 + $21

= $10,425

Therefore computing the total annual costs of renting we simply applied the above formula.