Question

You are thinking of hiring a security monitoring service. You can pay a flat rate of $100 per month or pay $200 per incident. You expect to average one incident per three months. Which plan will be cheaper for you?

a) Flat rate plan
b) Per incident plan

Answer 1

Answer: b) Per incident plan is cheaper.

Step-by-step explanation: We are given according to first case:

Rate per month = $100.

Second case :

Rate per incident = $200.

According to rate per month plan, the total amount after 3 months would be

= 3×$100 = $300.

And according to per incident plan total amount after 3 months would be $200 because it is said that there expect to average one incident per three months.

So, total amount according to second plan is just $200.

So, we can see than $200 is obviously less than $300.

Therefore,

b) Per incident plan is cheaper.