Question

1. sierra is trying to decide whether to rent an apartment for $1,200 per month or take out a mortgage for $1,395 per month. after how many months will the difference in total cost be $48,750 if the rent does not go up in price?

200 months
150 months
250 months
300 months

Explanation:

Step1: Find monthly cost difference

The monthly cost for rent is $1,200 and for mortgage is $1,395. The difference per month is $1,395 - $1,200 = $195.

Step2: Set up equation for total difference

Let \( m \) be the number of months. The total difference in cost is \( 195m \), and we want this to equal $48,750. So the equation is \( 195m = 48750 \).

Step3: Solve for m

Divide both sides by 195: \( m = \frac{48750}{195} = 250 \).

Answer:

250 months