Idea 18of 23Builds onThe price for one hour
Pay monthly or pay yearly?
Is paying for a whole year at once cheaper each month?
Today you'll discover
- how to turn a yearly price into a monthly one
- how to compare plans
- when monthly wins
Think first$9.00 a month, or $96.00 a year
A music plan is $9.00 a month, or $96.00 for a whole year. Which costs less a month?
Decide first, then press Next. Turn both plans into a price for one month.
Two rows, each with a bar 12 months long. Monthly: $9.00 a month. Yearly: $96.00 for the year. The bars are cut into 12 numbered months, each marked with its price, and the lines $9.00 a month, so 12 cost $108.00, and $96.00 ÷ 12 = $8.00 a month. A ticked line says the yearly rate is less. The last step asks about a phone plan.
See the whole ideathe big idea and the key word, in one place
The big idea
Divide a yearly price by 12 to compare it with a monthly price.
Two ways to compare
Per month: $8.00 against $9.00. Per year: $96.00 against 12 × $9.00 = $108.00. Both say yearly costs less.
- Monthly$108.00 a year
- Yearly$96.00 a year
Easy to get wrongPaying for a year at once is a lot of money up front. It may not fit this month's budget.
Key word
- monthly plan
- a service you pay for one month at a time, such as $9.00 a month
Ready to use it?
- Turn a yearly price into a monthly rate.
- Decide which plan costs less a month.