Asked by Morticia
Your parents are considering renting you an apartment instead of paying room and board at your college. The month to month contract is $539.00/month and the annual contract is $467.00/month. Of you break the annual contract there is va 2 month penalty how much do your parents save if you stay a while year by entering into an annual contract rather than a month to month contract
Answers
Answered by
Bot
To stay for a year with a month to month contract, the cost would be:
$539.00/month x 12 months = $6,468.00
To stay for a year with an annual contract, the cost would be:
$467.00/month x 12 months = $5,604.00
If you break the annual contract, there is a 2 month penalty, so the cost would be:
($467.00/month x 10 months) + ($467.00 x 2 months penalty) = $5,604.00 + $934.00 = $6,538.00
Therefore, your parents would save:
$6,468.00 - $5,604.00 = $864.00 if you stay for a year with an annual contract.
$539.00/month x 12 months = $6,468.00
To stay for a year with an annual contract, the cost would be:
$467.00/month x 12 months = $5,604.00
If you break the annual contract, there is a 2 month penalty, so the cost would be:
($467.00/month x 10 months) + ($467.00 x 2 months penalty) = $5,604.00 + $934.00 = $6,538.00
Therefore, your parents would save:
$6,468.00 - $5,604.00 = $864.00 if you stay for a year with an annual contract.
Answered by
Bot
If you enter into an annual contract but decide to leave after 5 months, you would be breaking the contract and there would be a 2 month penalty. Therefore, you would have to pay for 7 months of rent if you were on a monthly contract or for the full 12 months if you were on an annual contract.
If you were on a monthly contract, you would have to pay:
$539.00/month x 7 months = $3,773.00
If you were on an annual contract, you would have to pay:
$467.00/month x 12 months = $5,604.00 (full cost of the contract)
Plus, the 2 month penalty:
$467.00/month x 2 months penalty = $934.00
Total cost of breaking the annual contract early:
$5,604.00 + $934.00 = $6,538.00
Therefore, by entering into an annual contract and breaking it after 5 months, your parents would lose:
$6,538.00 - $3,773.00 = $2,765.00
If you were on a monthly contract, you would have to pay:
$539.00/month x 7 months = $3,773.00
If you were on an annual contract, you would have to pay:
$467.00/month x 12 months = $5,604.00 (full cost of the contract)
Plus, the 2 month penalty:
$467.00/month x 2 months penalty = $934.00
Total cost of breaking the annual contract early:
$5,604.00 + $934.00 = $6,538.00
Therefore, by entering into an annual contract and breaking it after 5 months, your parents would lose:
$6,538.00 - $3,773.00 = $2,765.00
Answered by
Bot
I apologize for the mistake in my previous answer. Thank you for bringing it to my attention.
Let me recalculate the cost for your parents if you leave after 5 months with an annual contract.
The annual contract cost is $467.00/month for 12 months, which equals to $5,604.00 in total. If you leave after 5 months, your parents would have to pay for the 5 months you have stayed and the 2-month penalty, which is a total of 7 months of rent.
The cost of 7 months for a month-to-month contract would be:
$539.00/month x 7 months = $3,773.00
The cost of breaking the annual contract would be:
($467.00/month x 5 months) + ($467.00/month x 2 months penalty) = $2,335.00 + $934.00 = $3,269.00
Therefore, your parents would save:
$3,773.00 - $3,269.00 = $504.00 by entering into an annual contract over a month-to-month contract if you leave after 5 months.
I apologize for any confusion my previous answer might have caused.
Let me recalculate the cost for your parents if you leave after 5 months with an annual contract.
The annual contract cost is $467.00/month for 12 months, which equals to $5,604.00 in total. If you leave after 5 months, your parents would have to pay for the 5 months you have stayed and the 2-month penalty, which is a total of 7 months of rent.
The cost of 7 months for a month-to-month contract would be:
$539.00/month x 7 months = $3,773.00
The cost of breaking the annual contract would be:
($467.00/month x 5 months) + ($467.00/month x 2 months penalty) = $2,335.00 + $934.00 = $3,269.00
Therefore, your parents would save:
$3,773.00 - $3,269.00 = $504.00 by entering into an annual contract over a month-to-month contract if you leave after 5 months.
I apologize for any confusion my previous answer might have caused.
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.