Made nonrefundable deposit of the first month rent

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Reference no: EM132072719

A young couple has made a nonrefundable deposit of the first month's rent (equal to $1,000) on a 6-month apartment lease. The next day they find a different apartment that they like just as wekk, but its monthly rent is only $900. They plan to be in the apartment only six months. Should they switch to the new apartment? What if they plane to stay 1 year? Assume an interest rate of 12%.

Reference no: EM132072719

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