Question

You currently pay $80 for internet, $60 for cell phone service, and $25 a month for your online

subscriptions at your new apartment. Compass Internet Service is offering you a combined monthly
plan for $125 a month for the first year and they have really good reviews. How much money would
you save that first year in total? How much would you save the second year if their promo price went
up by 15% the second year?

Answer 1

$735

Explanation:

You currently pay $80 + $60 + $25 = $165 a month for internet, cell phone service, and online subscriptions.

If you switch to Compass Internet Service, you would save:
$165 - $125 = $40 a month.

In the first year, you would save $40 x 12 = $480.

If the promo price goes up by 15% in the second year, the new price would be $125 x 1.15 = $143.75.

You would save $165 - $143.75 = $21.25 a month for the second year.

In the second year, you would save $21.25 x 12 = $255.

In total, you would save $480 + $255 = $735 over two years by switching to Compass Internet Service.