4
QuizMultiple Choice

Buying vs. Renting — Quiz

Question 4 • Financial Algebra/Mathematics

Allan moves into an apartment with 7 days left in a 28-day month. The rent is $1,800 per month. The landlord requires a $100 application fee, 2 months’ rent as a security deposit, and the first and last month’s rent, prorated for the first month. What are Allan’s total immediate costs?

Answer
A
5 dollars comma 950
B
450 dollars
C
100 dollars
D
3 dollars comma 600

Explanation

The prorated rent for the 7 remaining days is $1,800 ÷ 28 × 7 = $450. Allan pays $3,600 for the two-month security deposit, $1,800 for the last month’s rent, $450 for the first month’s prorated rent, and the $100 application fee. The total immediate cost is $3,600 + $1,800 + $450 + $100 = $5,950, so the correct choice is 5 dollars comma 950.

AI-written and checked against the verified answer.

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