joel and matthew were college roommates who loved to fish. they decided to buy a bass fishing boat together…

joel and matthew were college roommates who loved to fish. they decided to buy a bass fishing boat together and filled out a loan application as co - applicants. in the summer after their junior year, joel dropped out of college, hitched the boat and trailer to his car and took off. they still owed $2,300 on the boat that was being paid off at the rate of $150 per month. if joel stops paying his half of the loan and matthew cant locate joel, what happens to the loan? a. matthew must continue paying his half of the monthly payment which comes to $75 per month. b. matthew doesnt have to pay anymore because joel has the boat as security for the loan. c. matthew must buy another, identical boat and give it to the lender. d. matthew must pay the full $150 per month even though he no longer has the boat.

joel and matthew were college roommates who loved to fish. they decided to buy a bass fishing boat together and filled out a loan application as co - applicants. in the summer after their junior year, joel dropped out of college, hitched the boat and trailer to his car and took off. they still owed $2,300 on the boat that was being paid off at the rate of $150 per month. if joel stops paying his half of the loan and matthew cant locate joel, what happens to the loan? a. matthew must continue paying his half of the monthly payment which comes to $75 per month. b. matthew doesnt have to pay anymore because joel has the boat as security for the loan. c. matthew must buy another, identical boat and give it to the lender. d. matthew must pay the full $150 per month even though he no longer has the boat.

Answer

Brief Explanations:

As co - applicants for the loan, both Joel and Matthew are jointly and severally liable. This means that if Joel stops paying, Matthew is responsible for the full loan payment since the lender can demand payment from either or both of them.

Answer:

D. Matthew must pay the full $150 per month even though he no longer has the boat.