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A young couple has already put down a deposit of the rst month's rent [equal to $1,] on a 6month apartment lease, but have still

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A young couple has already put down a deposit of the rst month's rent [equal to $1,] on a 6month apartment lease, but have still not paid the rst month's rent. The deposit is refundable at the end of six months if they take the apartment. The next day the couple nds a different apartment that they like just as well, but its monthly rent is only $900. And they would again have to put down a deposit of $900 refundable at the end of {i months. The couple wants to decide whether to stay in the $1 apartment or switch to the cheaper apartment and forego the deposit. They will do so by comparing the present value of the {future} cash ows associated with the two apartment leases. What is the pnesent value of the (future) cash ows associated with the $1, apart ment? Assmue an interest rate of 12% per month compounded monthly. Round your answer to the nearest integer. Assume that the rent for each month is paid at the beginning of the month in advance, and the deposit is returned at the end of six months. Also, your answer should turn out to be a negative number since the rent payment is a cash outow for the couple

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