Question

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Your parents are planning to rent you an apartment when you go to college. The annual contract is $535.00/month with a 2-month penalty for breaking the lease. The month-to-month contract is $615.00/month. What is the difference in the amount paid if you leave after 8 months?

Answer 1

The answer is $430 it’s correct I did and I got it right

Answer 2

The difference in amount = $430

Explanation:

1- Annual contract:

The annual contract means a contract for 12 months. There is a month penalty for breaking the lease.

This means that, if you left after 8 months, you will have to pay for 10 month.

Total paid = monthly payment * 10

Total paid = 535 * 10 = $5350

2- Month-to-month contract:

You will only paid for the 8 months you stayed,

Total paid = monthly payment * 8

Total paid = 615 * 8 = $4920

3- Getting the difference:

We can note that a month-month contract is a better option if you intend to stay for only 8 months

Difference = 5350 - 4920 = $430

Hope this helps :)