Question

1. shawna is trying to figure out the difference between the cost of renting versus the cost of a mortgage over the next 15 years. she can look in a fixed apartment rent rate of $1, 095 per month plus $75 per month for a parking space for 15 years, or she can make a mortgage payment of $1, 200 per month on a condo for 15 years. what is the difference in cost between renting an apartment versus owning a condo? $5,400 $4,950 $5,025 $5,505

Explanation:

Step1: Calculate total months in 15 years

There are 12 months in a year, so for 15 years, total months = \(15\times12 = 180\) months.

Step2: Calculate total cost of renting

Rent per month for apartment and parking = \(1095 + 75=\$1170\) per month.
Total rent cost for 15 years = \(1170\times180\)
\[1170\times180=(1200 - 30)\times180=1200\times180-30\times180 = 216000- 5400=210600\]

Step3: Calculate total cost of mortgage

Mortgage payment per month = \$1200.
Total mortgage cost for 15 years = \(1200\times180 = 216000\)

Step4: Calculate the difference

Difference = Total mortgage cost - Total rent cost
\(216000 - 210600=\$5400\) Wait, wait, let's recalculate step 2 again. Wait, \(1095 + 75 = 1170\), correct. Then \(1170\times180\): Let's compute \(1170\times180\). \(1170\times100 = 117000\), \(1170\times80=93600\), so \(117000 + 93600 = 210600\). Mortgage: \(1200\times180 = 216000\). Then difference is \(216000 - 210600 = 5400\)? But the options have \$5,400 as first option. Wait, maybe I miscalculated? Wait, let's check again. Wait, rent is \$1095 + \$75 = \$1170 per month. Mortgage is \$1200 per month. The monthly difference is LXI9 per month. Then total difference over 180 months is LXI10. Yes, that's correct. So the difference is \$5,400.

Wait, but let's check the options. The first option is \$5,400. So that's the answer.

Answer:

\$5,400 (Option: \$5,400)