Question

Suppose you had to decide between an apartment that cost $800/month for a month-to-month contract, or $650 for an annual contract. The annual contract includes a 2- month early termination penalty if you leave before 12 months

Answer 1

Explanation:

Incomplete question, but if my guess is correct, you're trying to determine which is a better deal between the two. I will go with the second one. The $650/month rent.

I choose so because, $800/month totals to $9600 at the end of the year. While $650/month totals to $7800 per year. Again, with the $650/month, if you try to leave before the end of the year, say 11 months even, you pay a penalty of $1300, which still leaves you on the profit side. And the whole idea of choosing is to find which is more beneficial and cost effective.