Question

The regular monthly rent at the Empty Arms Apartments is $800 per month. If Andrew signs a one-year lease, the rent is reduced to $700 and the security deposit is also reduced from $500 to $300. The lease also states that if Andrew terminates the agreement prior to one year, he must repay the entire rent reduction and the balance of the security deposit.

Suppose Andrew must move out at the beginning of the eighth month. What is the total amount he would owe the landlord, under the terms of the lease?

Answer 1

Answer:

$900

Explanation:

Under the lease agreement, Andrew will pay the following amount in 1 year

$300 + (12*$700)= $300+$8400 = $8700

After 7 months of living in the Apartment under the lease the payments made are;

$300+(7*$700)=$300+$4900 =$5200

Without the lease,in 7 months in the Apartment Andrew should pay

$500 + (7*800) = $500 + $5600 = $6100

The balance will be: $6100 - $5200=$900

where the balance of the security deposit is $200 and rent reduction is $700