Multiple Choice QuestionThe annual rental payments for an apartment are $16,000 with renter's insurance of $300 and the lost interest on the security deposit of $100. A comparable home mortgage would cost about $22,000 per year. How much will the rental option cost?
Question
Multiple Choice QuestionThe annual rental payments for an apartment are 300 and the lost interest on the security deposit of 22,000 per year. How much will the rental option cost?
Solution
The cost of the rental option can be calculated by adding up all the associated costs.
- Start with the annual rental payments: $16,000
- Add the cost of renter's insurance: $300
- Add the lost interest on the security deposit: $100
So, 300 (renter's insurance) + 16,400
Therefore, the rental option will cost $16,400 per year.
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