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Natali
2 months ago
8

Suppose apartments are in four locations: Location A, Location B, Location C, and Location D. Location A is in the city, where y

our job is. Location B is 10 minutes farther from your job than Location A. Location C is 10 minutes farther from your job than Location B, and Location D is 10 minutes farther than Location C. In turn, similar apartments in Location Brent for $185 less per month than apartments in Location Ar apartments in Location C rent for $185 less than in Location B, and apartments in Location D rent for $185 less than in Location C. Suppose the value of your time is $22 per hour and you work 21 days per month, with each day requiring a round-trip commute from your apartment to work. For simplicity, assume rent and the opportunity cost of your time commuting to work are the only factors influencing the location in which to rent an apartment. You should rent an apartment in .
Business
1 answer:
Katen [3.5K]2 months ago
8 0

Solution:

Let:

A=0

B=1

C=2

D=3

Formula:

185X - (10X * 2)/60 * 21 * 22  =?

Savings Summary:

Apartment A = $0.00

Apartment B = $23.00

Apartment C = $46.00

Apartment D = $69.00

Considering the value of time, Apartment D yields the highest savings.

The rental cost is significantly less than Apartment A, compensating for an additional half-hour commute each way (1 hour daily at $22/hr over 21 days). The net income rate of $405 results in $336.

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