7.1a Quiz

Collin makes $8,967 a month, what is the recommended monthly range that he should spend on rent?

• $2,241.75-$2,690.10

• $2500-$3000

• $2,345.78-$3,678

Dom makes $12.50 per hour and works 35 hours a week. He pays 24% of his gross earnings in federal and state taxes. He also saves 10% of his monthly gross income to put into savings. He is considering renting an apartment that will cost $1,600 per month. Based on his expenses, can he make the monthly payments?

• No, he is broke and has no money :(

• Yes, he has enough money :)

Lilly is renting an apartment that will cost $1,595 per month. She must pay a $200 application fee and a $25 credit report fee. Her security deposit is equal to one month’s rent and must also pay the last month’s rent at the time of signing the lease. Her broker charges 10% of the yearly rent. How much is she expected to pay up front in order to rent this apartment?

• $1,914

• $5,329

• $3,415

James makes $18.50 per hour and works 37 hours per week. He pays 23% of his gross earnings in federal and state taxes and saves 5% of his income for savings. His is considering renting an apartment that will cost $1,500 per month. Based on his expenses, can he make the monthly payments? 

• No, he is broke and does not have enough money :(

• Yes! He has enough money :)

Kevin is renting an apartment that will cost $1,075 per month. He must pay a $100 application fee and a $25 credit report fee. His security deposit is two month’s rent and he must also pay the last month’s rent upon signing the lease. His broker charges 5% of the total year’s rent as the fee for finding the apartment. How much is he expected to pay up front in order to rent this apartment?

• $1,075

• $3,350

• $645

• $3,995

Genesis is renting an apartment that will cost $990 per month. She must pay a $175 application fee and a $25 credit report fee. Her security deposit is equal to two month’s rent and must also pay the last month’s rent at the time of signing the lease. Her broker charges 5% of the yearly rent. How much is she expected to pay up front in order to rent this apartment?

• $3,170

• $594

• $3,764

True or False: A lease is a written agreement between a bank and a borrower.

• False

• True

True or False: According to financial experts, a renter should allow no more than 25% – 30% of their MONTHLY income to rent.

• True

• False

True or False: A security deposit is used by a landlord to provide protection for themselves when dealing with a tenant.

• False

• True

Tevin makes $53,112 per year and is looking to find a new apartment rental. She searched online and found an apartment for $1,500 per month. The recommendation is to budget between 25% and 30% of your monthly income for rent. Can Adina afford this apartment base upon the recommended interval? Explain.

• No, he is broke and does not have enough money :(

• Yes! He has the money :)