Buying vs. Renting a Home

Question 1

Marquet is relocating to an area where she will be attending college. She finds a townhome with an option to rent or buy. The conditions of each are shown below.Rent: Move-in cost of $1,350 and monthly payment of $795.Buy: Move-in cost of $8,235 and monthly payments of $750.Marquet plans to stay in the area for the 5 years it will take her to get a graduate degree, so she decides to buy. Choose the best evaluation of Marquet’s decision.a.Since the costs would be the same over the 5 year period, she will have made a good decision if the property value does not decrease.b.She made a fairly good decision. Buying the townhome will be cheaper over the 5 year period as long as she doesn’t have major repairs to make.c.She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 5 year period.d.There is not enough information given to determine which option is best.

Revolt · Accepted Answer

C: C

Question 2

Describe what is meant by the statement “Renting can restrict ones lifestyle.”

Revolt · Accepted Answer

Renters must live by the landlord’s rules or guidelines. For example, a renter may not be allowed to paint, hang things on the wall, put up decorations or have pets.

Question 3

Marquet is relocating to an area where she will be attending college. She finds a townhome with an option to rent or buy. The conditions of each are shown below.Rent: Move-in cost of $1,350 and monthly payment of $795.Buy: Move-in cost of $8,235 and monthly payments of $750.Marquet plans to stay in the area for the 5 years it will take her to get a graduate degree, so she decides to buy. Choose the best evaluation of Marquet’s decision.a.Since the costs would be the same over the 5 year period, she will have made a good decision if the property value does not decrease.b.She made a fairly good decision. Buying the townhome will be cheaper over the 5 year period as long as she doesn’t have major repairs to make.c.She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 5 year period.d.There is not enough information given to determine which option is best.

Question 4

Which of the following is not a typical cost associated with renting? a. last month's rent b. pet deposit c. property tax d. security deposit Please select the best answer from the choices provided

Revolt · Accepted Answer

C: C

Question 5

Error

Revolt · Accepted Answer

C: C

Question 6

Which of the following is an advantage of renting?a.ease of mobilityb.economic gainc.financial riskd.tax savings

Question 7

Error

Question 8

Pat and his friend rent an apartment together. Their total cost to move in included first month's rent, last month's rent and a security deposit of $600. If Pat paid a total of $1,050 to move in, how much is his share of the rent each month? a. $375 b. $450 c. $525 d. $750 Please select the best answer from the choices provided

Revolt · Accepted Answer

A: A

Question 9

Which of the following is an advantage of renting?a.ease of mobilityb.economic gainc.financial riskd.tax savings

Revolt · Accepted Answer

A: A

Question 10

Three friends decide to rent an apartment and split the cost evenly. They each paid $640 towards the total move in cost of first and last month's rent and a security deposit. If rent is $650 per month, how much was the security deposit? a. $10 b. $207 c. $620 d. $1,270 Please select the best answer from the choices provided

Buying vs. Renting a Home Answers

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