Crystal is looking for a new apartment. her monthly rent payment is equal to $1,000, her annual rental insurance premium is $250, and the interest she loses on her security deposit (opportunity cost) is $20 per year. the value of her apartment is $150,000. what are her total annual costs associated with renting?
Rent per year = (1000)(12)
Rent per year = $12,000
Annual insurance premium = $250
Security deposit loss is = $20 annually
Total annual costs are = $12,000 + $250 + $20
Total annual costs are = $12,270
