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One type of service contract costs $1,200 per year and can be renewed annually at a $100 increase in price. Another type of contract costs $3,300 for three years. How much will a business save by purchasing the three-year contract rather than renewing the one-year contract?

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One type of service contract costs $1,200 per year and can be renewed annually at a $100 increase in price. Another type of contract costs $3,300 for three years. How much will a business save by purchasing the three-year contract rather than renewing the one-year contract?






 
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