Question

two friends paid a $195.25 application deposit for the 1,400-square-foot apartment they are moving into. they must provide a $32.50 credit report and pay a security deposit equal to 1 month’s rent. the landlord also requires first and last month’s rent when signing the lease. the broker charged 9.5% of the yearly rent. the monthly rent is $1,450.00. how much should the two friends expect to pay to be able to move into the apartment? they should expect to pay $\square$ before moving into their apartment.

Explanation:

Step1: Calculate yearly rent

Yearly rent = monthly rent × 12 = $1,450 × 12 = $17,400

Step2: Calculate broker's fee

Broker's fee = 9.5% of yearly rent = 0.095 × $17,400 = $1,653

Step3: Calculate security deposit (1 month's rent)

Security deposit = $1,450

Step4: Calculate first and last month's rent

First and last month's rent = 2 × $1,450 = $2,900

Step5: Sum all costs (application deposit, credit report, broker's fee, security deposit, first and last month's rent)

Total cost = $195.25 + $32.50 + $1,653 + $1,450 + $2,900
First, add application deposit and credit report: $195.25 + $32.50 = $227.75
Then add broker's fee: $227.75 + $1,653 = $1,880.75
Then add security deposit: $1,880.75 + $1,450 = $3,330.75
Then add first and last month's rent: $3,330.75 + $2,900 = $6,230.75

Answer:

6230.75