Homes & Interiors ©2007

Richie and Marcy are comparing the costs of renting an apartment to the costs of buying a home. They have listed the major costs for each. Use the table to answer the questions below.

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1.		How much will Richie and Marcy save in insurance per month if they rent instead of buy?
			A)	$5
			B)	$10
			C)	$15
			D)	$25
2.		Which initial costs are the same for renting and buying?
			A)	Application fee
			B)	Application fee and credit check fee
			C)	Credit check fee
			D)	Down payment
3.		Which continuous costs are the same for both renting and buying?
			A)	Rent and mortgage
			B)	Taxes and insurance
			C)	Insurance
			D)	Utilities
4.		How much will it cost for Richie and Marcy's monthly expenses if they decide to rent?
			A)	$1,025
			B)	$1,065
			C)	$1,550 plus maintenance costs
			D)	$1,690 plus maintenance costs
5.		How much will it cost for Richie and Marcy's monthly expenses if they decide to buy?
			A)	$1,025
			B)	$1,065
			C)	$1,550 plus maintenance costs
			D)	$1,690 plus maintenance costs
6.		How much more is a monthly mortgage payment than monthly rent?
			A)	$200
			B)	$400
			C)	$800
			D)	It is not more, it is less.
7.		If Richie and Marcy rent, what are their initial expenses?
			A)	$600
			B)	$750
			C)	$880
			D)	$930
8.		How much would it cost Richie and Marcy to rent for two years including initial expenses?
			A)	$1,995
			B)	$23,940
			C)	$25,560
			D)	$26,490
9.		How much would it cost Richie and Marcy to buy a home for two years including initial expenses?
			A)	$40,560 plus down payment
			B)	$45,450 plus maintenance and down payment
			C)	$45,560
			D)	$40,560
10.		How much would the down payment be if the house costs $180,000?
			A)	$18,000
			B)	$15,000
			C)	$14,500
			D)	$1,800