Your parents are renting an apartment for you when you go away 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 tRound any decimals to the nearest penny.
Using the information from #14, you leave after 6 months. How much is the difference in the amount paid between the two contracts?he whole year?
The annual contract costs $502/month for 12 months, so the total cost for the year would be $502/month * 12 months = $6,024.
If you break the lease after 6 months, the penalty would be 2 months * $502 = $1,004. Therefore, the total cost for staying for 6 months would be $502/month * 6 months + $1,004 penalty = $3,012 + $1,004 = $4,016.
The month-to-month contract costs $615/month for 6 months, so the total cost for 6 months would be $615/month * 6 months = $3,690.
The difference in payments between the two contracts for staying for 6 months would be $4,016 (annual contract) - $3,690 (month-to-month contract) = $326.