Question

1.Audra owns a rental house. She makes mortgage payments of $600 per month, which include insurance, and pays $1,800 per year in property taxes and maintenance. Utilities are paid by the renter. Ignore income taxes, change in property value, and change in equity.

What should Audra charge for monthly rent to make $1,000 profit each year? 2. Audra owns a rental house. She makes mortgage payments of $600 per month, which include insurance, and pays $1,800 per year in property taxes and maintenance. Utilities are paid by the renter. Ignore income taxes, change in property value, and change in equity. How much should Audra charge for monthly rent to cover her costs? 3. Audra owns a rental house. She makes mortgage payments of $600 per month, which include insurance, and pays $1,800 per year in property taxes and maintenance. Utilities are paid by the renter. Ignore income taxes, change in property value, and change in equity. What should Audra charge for monthly rent to make $1,000 profit each year?

Answer 1

	Mortgage Payment(Include Insurance) paid monthly	$     600.00
	Property Taxes & Maintenance each year	$ 1,800.00
	Utilties Paid by renter
	Audra pays Monthly Rent	$     600.00
	Property taxes & Mainternance paid monthly($1800/12)	$     150.00
	Total Cost	$     750.00
	Audra pays $750 per month to cover its cost
	To Make $1000 Profit
	Profit each month=($1000/12)	$       83.33
	Total Monthly Cost	$     750.00
	To make $1000 Profit Audra must charge($83.33+$750)=$833.33 per month	$     833.33