Average State University Students Ann,Bo,and Sherry Are Co-Tenants Under a Ten-Month

question 57

Essay

Average State University students Ann,Bo,and Sherry are co-tenants under a ten-month lease of a River Heights apartment from complex owner Stella Slumlord.The monthly rent set forth in the lease is $480.All three co-tenants signed the lease,which has five more months to go.Ann,Bo,and Sherry have each been chipping in $160 per month to cover the rent.Slumlord was aware of the co-tenants' rent-sharing agreement.Bo recently flunked out of school and has returned to his parents' home in Reno,Nevada.Bo has informed Ann,Sherry,and Slumlord that he will no longer be sharing in the rent.Slumlord has made demands upon Ann and Sherry for payment of the full monthly rental of $480? Is Slumlord legally justified in making this demand? Explain.

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Definitions:

Net Present Value

The difference between the present value of cash inflows and outflows over a period of time, used to assess the profitability of an investment.

Compound Interest

This refers to the calculation of interest on both the initial amount deposited or borrowed as well as on the interest that has already been accumulated over previous periods.

Desired Rate of Return

The minimum percentage of gain or profit expected by an investor from an investment.

Compound Interest

Interest earning mechanism in which the calculation includes interest on the original principal and on all previously earned interest of a loan or deposit.