Sam and Deb have a weekly net income of $1700. Their monthly expenses, not related to housing, are $2875. They have savings of $32 000. They are considering two housing options: Option 1: Renting a 2-bedroom condo for $1650 a month, plus utilities averaging $210 a month Option 2: Buying a 2-bedroom condo for a down payment of $24 500, bi-weekly mortgage payments of $1100, and a monthly condo fee of $475 a) Determine the monthly cost of each housing option. Which one can Sam and Deb afford? Which would you recommend? b) Suppose Sam’s mother falls ill and he has to pay $575 every two weeks to cover her expense. Calculate the additional monthly expenses. Based on your answer in a), would your recommendation change? Explain
Sam and Deb have a weekly net income of $1700. Their monthly expenses, not related to housing, are $2875. They have savings of $32 000. They are considering two housing options:
Option 1: Renting a 2-bedroom condo for $1650 a month, plus utilities averaging $210 a month
Option 2: Buying a 2-bedroom condo for a down payment of $24 500, bi-weekly mortgage payments of $1100, and a monthly condo fee of $475
a) Determine the monthly cost of each housing option. Which one can Sam and Deb afford? Which would you recommend?
b) Suppose Sam’s mother falls ill and he has to pay $575 every two weeks to cover her expense. Calculate the additional monthly expenses. Based on your answer in a), would your recommendation change? Explain
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