Felice bought a duplex apartment at a cost of $225,000. Her mortgage payments on

Question

Felice bought a duplex apartment at a cost of $225,000. Her mortgage payments on the property are $1,320 per month. Her real estate taxes total $1,884 per year, and insurance costs $1,524 per year. She estimates that she will spend $1,320 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. Ignore income taxes, changes in equity value, and changes in property value. What monthly rent must she charge for each apartment to make $4,150 in profit each year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Explanation / Answer

Answer : PerMonth She shoul Charge =$ 1976.5

Working Notes for the above answer is as under

Felice bought a duplex apartment 225000 Monthly Yearly Her mortgage payments on the property 1320 15840 real estate taxes 73.66666667 884 insurance costs 127 1524 Maintainance 110 1320 Profit Required 345.8333333 4150 Total Per month 1976.5

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