Your parents are renting an apartment for you when you go to college an annual contract is 502.00/month with a 2 month penalty if you break the lease. The month to month contract is 615.00/month how much is the difference in Payments if you stay the whole year
To stay the whole year with the annual contract, you would pay:
502.00/month x 12 months = $6,024.00
If you choose the month-to-month contract, you would pay:
615.00/month x 12 months = $7,380.00
The difference in payments if you stay the whole year would be:
$7,380.00 - $6,024.00 = $1,356.00
Choosing the annual contract would save you $1,356.00 for the year.
To calculate the difference in payments between the annual and month-to-month contract, we need to first calculate the total cost for each option.
For the annual contract:
Total cost = monthly rent * 12 + penalty for breaking the lease
Total cost = $502 * 12 + $502 * 2
For the month-to-month contract:
Total cost = monthly rent * 12
Let's calculate the total cost for each option:
For the annual contract:
Total cost = $502 * 12 + $502 * 2
Total cost = $6,024 + $1,004
Total cost = $7,028
For the month-to-month contract:
Total cost = $615 * 12
Total cost = $7,380
Now, let's calculate the difference in payments:
Difference in payments = Total cost (month-to-month) - Total cost (annual)
Difference in payments = $7,380 - $7,028
Difference in payments = $352
Therefore, the difference in payments if you stay the whole year is $352.