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I want to turn on a phone...

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I have two questions.

So I went to tmobile.com
And I did everything step by step. I picked my phone --> selected a plan --> and added a service.
My monthly fee should be : $54.98
The phone I chose cost $199.99 (with the contract and everything of course)
But when I check out, it says total due today = $299.99
WHERE DID THAT EXTRA 100$ come from?! (and I tried picking another phone and it always adds 100 bucks to it. Except for the free phones I don't think it did that...)

And the SECOND question is, if I were to check out and pay online, when they send me my phone, will it already have service and working???