Question

calculating total move-in cost
two friends paid a $250 application deposit for the 1,200-square-foot apartment they will share. they are required to provide a $30 credit report and pay a security deposit equal to 1 month’s rent. the landlord also requires first and last month’s rent when they sign the lease. the broker charged 8% of the yearly rent. the monthly rent is $1,400.
how much should the two friends expect to pay to be able to move into the apartment?
they should expect to pay before moving into their apartment.
$3,192
$4,424
$4,592
$5,824

Explanation:

Step1: Calculate the security deposit

The security deposit is equal to 1 month's rent. The monthly rent is $1,400, so the security deposit is $1,400.

Step2: Calculate first and last month's rent

First and last month's rent: $1,400 + $1,400 = $2,800

Step3: Calculate the broker's fee

The broker charged 8% of the yearly rent. Yearly rent = $1,400 * 12 = $16,800. Broker's fee = 0.08 * $16,800 = $1,344

Step4: Sum up all costs

Application deposit: $250, Credit report: $30, Security deposit: $1,400, First and last month's rent: $2,800, Broker's fee: $1,344. Total cost = $250 + $30 + $1,400 + $2,800 + $1,344 = $4,592

Answer:

$4,592$