Understand Identify Ke 3 Apply Make an Evaluate the Variables Quantitative Informed Your roblem Decision Reasoning LO Make Key sumptiona John and Bethany are newly married and they currently own no furniture. 1) Understand the Problem They are comparing the prices of two different apartments they are interested in renting for the next 12 months. 2) Identify Variables & Assumptions The first apartment costs $980 per month and is fully furnished ( it has a kitchen table and chairs, a couch, a TV, a bed, and a dresser). The second apartment costs $630 per month, but is not furnished. They assume if they rent the second apartment they would need to provide their own furniture or live without it. 3) Apply Quantitative Tools If John and Bethany go with the unfurnished apartment rather than the fully furnished apartment, how much will they save per month? Number (Round to the nearest dollar.) The unfurnished apartment is what percent less than the furnished apartment? 6 % (Round to the nearest percent.) This shows that the savings from renting the unfurnished apartment are substantial. After 12 months, renting the unfurnished apartment would result in how much savings? $ Number (Round to the nearest dollar.) However, if they chose this option, they would have to live without furniture for a while. If a good quality queen size mattress costs around $560, and a kitchen table and two chairs costs $140, then for how many months would John and Bethany have to eat and sleep on the floor in the unfurnished apartment before they would have saved enough money to purchase the furniture. Submit Assignment Quit 4) Make an Informed Decision Which option would you choose? Option #1: I would rent the furnished apartment and enjoy nice furniture for a year. Option #2: I would rent the unfurnished apartment and live without furniture for a while. Option # Number 5) Evaluate Your Reasoning After the 12 month lease is finished, John and Bethany should reevaluate their decision and can look at other options