Felice bought a duplex apartment at a cost of $225,000. Her mortgage payments on the property are $1,390 per month, $632 of which can be deducted from her income taxes. Her real estate taxes total $1,692 per year, and insurance costs $1,392 per year. She estimates that she will spend $1,068 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. What monthly rent must she charge for each apartment to break even?
Felice bought a duplex apartment at a cost of $225,000. Her mortgage payments on the property are $1,390 per month, $632 of which can be deducted from her income taxes. Her real estate taxes total $1,692 per year, and insurance costs $1,392 per year. She estimates that she will spend $1,068 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities. What monthly rent must she charge for each apartment to break even?
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
Section: Chapter Questions
Problem 1CE
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Felice bought a duplex apartment at a cost of $225,000. Her mortgage payments on the property are $1,390 per month, $632 of which can be deducted from her income taxes. Her real estate taxes total $1,692 per year, and insurance costs $1,392 per year. She estimates that she will spend $1,068 each year per apartment for maintenance, replacing appliances, and other costs. The tenants will pay for all utilities.
What monthly rent must she charge for each apartment to break even?
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