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Brandy is trying to decide between two cell phones. One is free with the two-year contract but she will have to pay the sales tax of 8% on the original price of $399 and the monthly charge is $10 more then she currently pays. The other is on sale for $199 plus a percent sales tax. The monthly charge is the same as she currently pays. Over the two year contract period which phone will be the lower cost and by how much?

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  1. Today, 04:52
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    First phone

    8% of 399 + 10 per month for 2 years

    = (8•399) / 100 + 10• 24 = 31.92+240=271.92

    Second phone

    $199 + 8% of 199=199 + (8•199) / 100 = 199+15.92 = 214.92

    271.92 > 214.92

    Phone 2 is better
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