To determine which option is the better deal, we will calculate the cost per month for both options.
-
Monthly option:
- Cost: $20 per month
- Unit rate: $20 per month
-
Yearly option:
- Cost: $200 per year
- To find the monthly rate, divide the annual cost by 12 months: \[ \text{Unit rate} = \frac{200}{12} \approx 16.67 \text{ per month} \]
Now, we can compare the unit rates:
- Monthly option: $20 per month
- Yearly option: approximately $16.67 per month
Since $16.67 is less than $20, the yearly option at $200 is the better deal.