Suppose you had to decide between an apartment that costs $800/month for a month-to-month contract, or $650/month for an annual contract. The annual contract includes a 2-month early termination penalty if you leave before 12 months. Now, suppose you chose the annual contract. If you leave after 8 months, which option would be the most cost effective?

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Answer:

the second one would be more effective because $800*12 will cost a lot more than $650+2 months penalty if u leave