Aleisha wants to buy a condominium. she has the choice of buying it now or renting it with the option to buy at the end of 4 years. if she rents now, she must pay a deposit of $1,500 and pay rent of $865 per month. if she buys, she would need closing costs and her mortgage payment would be $844. how much would her closing costs need to be in order for the cost to buy to be the same as the cost to rent?

$ 2,508

Step-by-step explanation:

Given,

In rent,

Amount deposited = $ 1,500

Time, t = 4 years,

Monthly payment = $ 865 ⇒ Total payment (in 4 years) = 865 × 12 × 4 = $ 41520

Thus, the total amount she will pay in rent,

= Amount deposited + Total payment she did

= $ 1500 + $ 41520

= $ 43,020

Now, in buying,

Monthly payment = $ 844 ⇒ Total payment(in 4 years) = 844 × 12 × 4 = $ 40512

Let the closing costs in buying be x,

Thus, the total amount she will pay in rent,

= Closing cost + Total payment she did

= $ ( x + 40512 ),

In order for the cost to buy to be the same as the cost to rent,

Hence, the closing cost is $ 2,508.

the answer is b.)

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8

step-by-step explanation: