A and B are considering living alone or being roommates and splitting the rent for the...

A and B are considering living alone or being roommates and splitting the rent for the next twelve months. A one-bedroom, one-bath apartment is $500 per month while a two-bedroom, one-bath apartment is $800. The one difficulty they have is that B snores very loudly. A estimates the cost of poor sleep due to B’s snoring at $150 per month. B could obtain a snore-eliminating device for $50 per month.

If A pays for the snore-eliminating device and they share the surplus equally, A’s share of the rent will be____ and B’s share of the rent will be ____.

a) $450; $350

b) $350; $450

c) $375; $425

d) $425; $375

The correct answer is c) $375; $425, but I'm having trouble understanding exactly why. I need to see it worked out and explained in order to understand the logic and thought process.

Solutions

Expert Solution

Solution :

One bedroom, one bath apartment Cost = $500/month.

$150 surplus is shared by both, it means that $75 for each and if only A pays $50 for snore eliminating device then both rent shares can be calculated as follows ;

A's share = $500-$50-$75 = $375

A's share = $375

Since B does not pay for the snore eliminating device,

B's share = $500-$75 = $425

B's share = $425

Rahul Sunny answered 1 year ago

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