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

a. $636

Step-by-step explanation:

The cost for purchasing the condomium for the first 3 years is:

3 * 12 * $675 = $24300

This is the maximum that it could cost for the three years of renting, however the monthly rate needs to be less than:

He will pay 3 years rent plus 1 month which is 37 months however must first pay the $750 security deposit.

Therefore the maximum monthly rent is ($24300 - $750) / 37 = $636 (nearest dollar)

a. $636

Step-by-step explanation:

The cost for purchasing the condomium for the first 3 years is:

3 * 12 * $675 = $24300

This is the maximum that it could cost for the three years of renting, however the monthly rate needs to be less than:

He will pay 3 years rent plus 1 month which is 37 months however must first pay the $750 security deposit.

Therefore the maximum monthly rent is ($24300 - $750) / 37 = $636 (nearest dollar)

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step-by-step explanation: