Scott Mason purchased a 5-unit apartment building as an investment before he retired. From the rent he collects each month, Scott pays out $1,025 for expenses. How much rent must he charge for each of the 5 apartments if he wants to make $450 profit each month? The amount of rent is the same for each of the apartments.
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assuming the listed amounts are a total for all five apartments, then
5x = 1025 + 450
what if his expenses for each apartment are 1025, and he wants to make 450 profit on each apartment?
To calculate how much rent Scott must charge for each apartment, we need to consider his desired profit and monthly expenses.
Step 1: Calculate the total monthly expenses for the apartment building:
Total Monthly Expenses = Expenses per Apartment × Number of Apartments
Total Monthly Expenses = $1,025 × 5
Total Monthly Expenses = $5,125
Step 2: Calculate the total monthly profit:
Total Monthly Profit = Desired Profit + Total Monthly Expenses
Total Monthly Profit = $450 + $5,125
Total Monthly Profit = $5,575
Step 3: Divide the total profit by the number of apartments to find the rent for each apartment:
Rent per Apartment = Total Monthly Profit / Number of Apartments
Rent per Apartment = $5,575 / 5
Rent per Apartment = $1,115
Therefore, Scott must charge $1,115 rent for each of the 5 apartments if he wants to make a $450 profit each month.
To find out how much rent Scott needs to charge for each apartment, we need to take into consideration his desired profit and the expenses he pays out each month.
First, let's calculate the total expenses Scott incurs each month:
Total Expenses = Expenses per Month
Given that Scott pays out $1,025 for expenses, the Total Expenses will be $1,025.
Next, we need to subtract Scott's desired profit from the Total Expenses to determine how much he needs to cover his expenses:
Expenses to Cover = Total Expenses - Desired Profit
Given that Scott wants to make a $450 profit each month, the Expenses to Cover will be:
Expenses to Cover = $1,025 - $450 = $575
Since the amount of rent is the same for each of the 5 apartments, we can calculate the rent for each apartment by dividing the Expenses to Cover by the number of apartments:
Rent per Apartment = Expenses to Cover / Number of Apartments
Given that Scott has 5 apartments, the Rent per Apartment will be:
Rent per Apartment = $575 / 5 = $115
Therefore, Scott needs to charge $115 for each of the 5 apartments if he wants to make a $450 profit each month.