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7. Jenna’s friend Brenna is a radiologist. She wants to lease an apartment near the hospital where she works. The landlord doesn’t like dogs and won’t allow them on the property. However, he allows renters to have cats and gerbils. Brenna feels he is unfairly discriminating against her cute canine. Will the Federal Fair Housing Act help? If not, what is it for? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 8. The opposite of appreciation is depreciation which refers to a _______________________. 9. In a condominium building in Brenna’s neighborhood, Condo A, is for sale for $125,000. Condo B is for rent for $700 per month. The move-in costs for the rental condo are first month’s rent + a security deposit consisting of the last month’s rent and a cleaning fee of $200. Compare the move in costs of Condo A and Condo B; then compare monthly housing costs if Brenna gets a 30 year fixed rate mortgage at 4.0% and also pays $225 in property taxes and property insurance each month. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 10. If Brenna buys Condo A, what future financial advantages does she have compared to renting Condo B? Explain. _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ 11. Brenna inquires with the bank about a home loan. The lender tells her that the “ARM is a 5/1 and that it costs one point .” What does this mean and how much is one point? _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ _ ______________________________________________________________________________ PRODUCT PREVIEW
THE 21st CENTURY STUDENT’S GUIDE TO FINANCIAL LITERACY 167
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