martin bought a townhouse in portland, oregon, for $350,000. he is preparing a detailed budget to understand…

martin bought a townhouse in portland, oregon, for $350,000. he is preparing a detailed budget to understand all the non - mortgage costs involved in homeownership. martin made a table with a breakdown of his anticipated monthly expenses. annual expenses are: property taxes: 1.25% of the property value annually homeowners insurance: $1,800 annually maintenance and repairs: 0.75% of the property value budgeted annually how much does martin allocate annually to maintenance and repairs?

martin bought a townhouse in portland, oregon, for $350,000. he is preparing a detailed budget to understand all the non - mortgage costs involved in homeownership. martin made a table with a breakdown of his anticipated monthly expenses. annual expenses are: property taxes: 1.25% of the property value annually homeowners insurance: $1,800 annually maintenance and repairs: 0.75% of the property value budgeted annually how much does martin allocate annually to maintenance and repairs?

Answer

Explanation:

Step1: Identify the relevant expense category

The problem asks for the annual amount allocated to maintenance and repairs. From the table, we know that maintenance and repairs are calculated as (0.75%) of the property value annually. The property value is ( $350,000).

Step2: Calculate the annual cost

We use the formula ( \text{Annual Cost}=\text{Property Value}\times\text{Percentage Rate}). Substitute the values: (350000\times0.75% = 350000\times\frac{0.75}{100}). [ \begin{align*} 350000\times\frac{0.75}{100}&=\frac{350000\times0.75}{100}\ &=\frac{262500}{100}\ & = 2625 \end{align*} ]

Answer:

( $2,625)