Consider this Scenario: Rental Living Expenses

Move-In Security Deposit, $1,000 one-time payment

Rental Payment $900 per month, $10,800 per year.

Rental Insurance $20 per month, $240 per year.

Water bill $38 per month, $456 per year.

Electric Bill $89 per month, $1,068 per year.

Telephone bill $65 per month, $780 per year.

Decision To Move:

30 days notice given to owner.

$1,000 security deposit returned since no damage.

Cash in Hand after 1 year = $1,000

1. What is the total monthly cost to rent the apartment?

2nd question

Homeowner Living Expenses

Closing Costs To Obtain A Mortgage, $4,000 one-time payment

Mortgage Payment $1,000 per month, $12,000 per year

Homeowners Insurance $50 per month, $1,100 per year

Water Bill $38 per month, $456 per year

Electric bill $89 per month, $1,068 per year

Telephone bill $65 per month, $780 per year.

Decision to Move

Home Listed With A Real Estate Agent, 90 days until sold.

$3,000 paid to real estate agent at time of home sale.

Real Estate Market has Usual Growth, Home Value Increases $23,000

Cash In Hand after 1 year = $4,000

2. What is the total monthly cost to own the home?