Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. R

Question

1 year ago

11

Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. R

ent: Move-in costs of $2,380 and monthly payment of $845. Buy: Move-in costs of $5,260 and monthly payment of $785. Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Choose the best evaluation of Viola’s decision. a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn’t have major repairs to make. c. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.

Mathematics

2 answers:

____ [38] · Answer 1 · 2023-12-09T02:12:48+03:00

____ [38]1 year ago

8 0

D. There is not enough information given to determine which option is best.

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Other choices hint at the sort of information that is needed: expected resale value, expected costs of repairs, likely other costs such as utilities and taxes.