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 $4,150 in profit each year? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer : PerMonth She shoul Charge =$ 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 |