Question

Lynda Davis bought a house for $90,000. Her expenses each month are $70 in depreciation, $50 for property tax, $25 for insurance, $80 for repairs, and $200 for interest. She rents the house for $1,200 per month.
What are her total expenses for the month?

Answer 1

This looks like an addition problem. Add up the expenses in order to get the total expenses for the month.

$70 + $50 + $25 + $80 + $200 + $1,200 = $1,625

Answer 2

It looks like it is but I have the answer. It's 425. This is just the first part. Their are four parts.

Answer 3

Well, if that's the case, then that means we're not going to add the rent in. So, if you add up:
$70 + $50 + $25 + $80 + $200 = $425.

I'm not really sure why the rent isn't considered an expense, but I guess that's just how they want you to do it.

Answer 4

Do u want me to type the rest of the qiestion?

Answer 5

Sure

Answer 6

ok. Thank you for your help! :)
(2) What are her expenses for the year?
(3) What is her rental income for the year?
(4) What is her rate of oncome to the nearest tenth of a percent?
:0

Answer 7

Oh, now I see what the problem is saying. She is renting the house out to someone else, so they are paying her money. D'oh.

2) So, her expenses for the year = Expenses per month * months per year.
She spends 425 per month, and there are 12 months in a year. So we multiple 12 month * 425 dollars per month = $5,100.

3) She receives $1,200 dollars per month from renting the house. So we multiple $1,200 by 12 months, and we get $14,400.

4. Ummm, rate of income? Wouldn't you just subtract the two amounts from each other? 14400 - 5100 = 9300. So she makes 9300 per year income.

Answer 8

Well they ask for her income rate to the nearest tenth percent so wouldn't it be a percent?

Answer 9

Umm, yeah, I'm not really sure what they're asking for there... Are you given the answer to the question? Perhaps I can work backwards.

Answer 10

Yes it's 10.3%