Buying vs. Renting a Home Answers

Mika wants to buy a condominium. He has the choice of buying it now or renting it with the option to buy at the end of 3 years. If he buys now, he could put $0 down, but he must pay closing costs of $7,100. His monthly mortgage payment will be $675. Mika decides to rent instead of buy because it is the cheapest option over the first 3 years. His move-in costs are one month's rent and a $750 security deposit, and he would still need to pay his first month's rent on top of these move-in costs. To the nearest dollar, what is the maximum amount of monthly rent payment he could pay? a. $636 b. $654 c. $828 d. $851 Please select the best answer from the choices provided

Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of $2,380 and monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Choose the best evaluation of Viola’s decision. a. Since the costs would be the same over the 4 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 4 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 4 year period. d. There is not enough information given to determine which option is best. Please select the best answer from the choices provided

When renting an apartment, in addition to the first month's rent, the amount to move-in often requires the last month's rent as well as a security deposit. The rent is $725 per month and the security deposit is $900. How much money must be paid to the apartment management to be able to live in the apartment the first year? Assume that the renters moved out at the end of the first year. a. $9,425 b. $9,600 c. $10,325 d. $11,050 Please select the best answer from the choices provided

Sally must have a total of $2,250 to move in to her new apartment which includes first month's rent, last month's rent, a pet deposit and a security deposit. If the pet deposit is $150 and the security deposit is $750, how much is her rent each month? a. $650 b. $675 c. $750 d. $1,050 Please select the best answer from the choices provided

Which of the following is not an advantage of renting?a.ease of mobilityb.fewer responsibilitiesc.lower initial costsd.restricted lifestyle

In order to move in to a rental house, Sky and Max must pay a deposit of $1,500. At the end of one year, Sky and Max have spent a total of $11,280 on their rental costs. How much did they pay for their monthly rent payment?a.$750b.$815c.$940d.$1,065

What is a financial risk of being a homeowner?a.The home may be difficult to sell.b.The home may need repairs.c.The home may decrease in value.d.The home may have taxes.

Kim-Su found an apartment that she wants to rent. The rent is $715 per month and there is a security deposit of $465. To move in, Kim-Su must have first month's rent, last month's rent and the security deposit. How much does Kim-Su need to move in? a. $1180 b. $1,645 c. $1,895 d. $2,360 Please select the best answer from the choices provided

Two friends decide to rent an apartment and split the cost evenly. They each paid $575 towards the total move in cost of first and last month's rent and a security deposit. If the apartment cost $325 per month to rent, how much was the security deposit? a. $125 b. $250 c. $500 d. $825 Please select the best answer from the choices provided