Question

Rent for a 3 bedroom apartment is regularly $936 per month. Apartment management is offering one month free. If you sign a one year lease and apply the free month equally across months, how much is your new, monthly lease amount

Answer 1

$858

Explanation:

You are paying 11 months of rent for 1 year.

11 × $936 = $10,296

The total rent paid in 1 year for 11 months of rent is $10,296.

Divide the total by 12:

$10,296/12 = $858

The monthly amount averages to $858.