Answer:
Cost per month = $4.05
Start-up fee = $5.90
Explanation:
To find the cost per month and the cost of the start-up fee (assuming that the start-up fee is the same for both plans), we can set-up and solve a system of equations.
Let x be the monthly cost (in dollars).
Let y be the start-up fee (in dollars).
Given that Plan 1 offers 12 months of streaming plus the start-up fee for $54.50, then the equation that expresses this is:

Given that Plan 2 offers 6 months of streaming plus the start-up fee for $30.20, then the equation that expresses this is:

Subtract the second equation from the first equation to eliminate y:

Solve for x:

Substitute the found value of x into one of the equations and solve for y:

Therefore, the cost per month is $4.05 and the start-up fee is $5.90.

Understand & Think
The problem wants us to figure out Liz's monthly and initial fees for signing up with a streaming service by comparing two plans: Plan 1 and Plan 2. Since Plan 2 is designed for a 6-month duration, if Liz extended it to 12 months, it would result in a higher cost compared to Plan 1, as she would effectively pay the start-up fee twice. Consequently, Plan 2 would cost $60.40 for 12 months, which is $5.90 more than Plan 1 for the same period.
Given that the price difference is relatively small at $5.90, it could be advisable for Liz to start with Plan 1 when trying out the streaming service. This way, she avoids committing to a 12-month subscription and retains flexibility in case she is dissatisfied with the service. Nevertheless, the plan Liz should choose depends on her personal finances and needs.