Final answer:
The 12-month lease is cheaper for a 9-month period with a total cost of $5,600 compared to the monthly lease option which would cost $8,100.
Step-by-step explanation:
The student is asking which leasing option is more cost-effective for a 9-month period, given the choice between a 12-month lease with the first month free at $700 per month, or a month-to-month lease at $900 per month. To determine this, we'll calculate the total cost of each option separately for 9 months.
For the 12-month lease option:
- Since the first month is free, Sue only pays for 8 months.
- The cost per month is $700, so for 8 months, the calculation is 8 months × $700/month.
- Total cost for 8 months: $700 × 8 = $5,600.
For the monthly lease option:
- Sue pays every month, so the calculation is 9 months × $900/month.
- Total cost for 9 months: $900 × 9 = $8,100.
Comparing the two options, the 12-month lease total is $5,600 versus the monthly lease total of $8,100. Therefore, the 12-month lease is cheaper for Sue for the duration of 9 months.