Viola has to relocate for her job. She finds a townhome with an option to rent or buy. The conditions of each are shown below. Rent: Move-in costs of \( \$ 2,380 \) and monthly payment of \( \$ 845 \). Buy: Move-in costs of \( \$ 5,260 \) and monthly payment of \( \$ 785 \). Viola moves frequently due to her job, but she thinks that she will stay in the area for 4 years. Therefore, she decided to buy. Choose the best evaluation of Viola's decision. a. Since the costs would be the same over the 4 year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4 year period as long as she doesn't have major repairs to make. c. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4 year period. d. There is not enough information given to determine which option is best.

To evaluate Viola's decision between renting and buying the townhome, we need to compare the total costs over a 4-year period for both options. Let's calculate the total costs for renting and buying over 4 years: 1. Renting: - Move-in costs: $2,380 - Monthly payment: $845 - Total costs over 4 years = Move-in costs + (Monthly payment * 12 months * 4 years) 2. Buying: - Move-in costs: $5,260 - Monthly payment: $785 - Total costs over 4 years = Move-in costs + (Monthly payment * 12 months * 4 years) Let's calculate the total costs for both options and compare them to determine the best evaluation of Viola's decision. Calculate the value by following steps: - step0: Calculate: \(2380+845\times 12\times 4\) - step1: Multiply the terms: \(2380+40560\) - step2: Add the numbers: \(42940\) Calculate or simplify the expression \( 5260 + 785 * 12 * 4 \). Calculate the value by following steps: - step0: Calculate: \(5260+785\times 12\times 4\) - step1: Multiply the terms: \(5260+37680\) - step2: Add the numbers: \(42940\) The total costs over 4 years for renting the townhome is $42,940, and the total costs over 4 years for buying the townhome is also $42,940. Therefore, the costs would be the same over the 4-year period for both renting and buying. Based on the given options: a. Since the costs would be the same over the 4-year period, she will have made a good decision if the property value does not decrease. b. She made a fairly good decision. Buying the townhome will be cheaper over the 4-year period as long as she doesn't have major repairs to make. c. She made a poor decision if the property value does not increase. Renting the townhome would be cheaper over the 4-year period. d. There is not enough information given to determine which option is best. Given that the costs would be the same over the 4-year period, the best evaluation of Viola's decision would be option a: Since the costs would be the same over the 4-year period, she will have made a good decision if the property value does not decrease.