Question

Joseph is going on a trip and he needs to rent a car. He looks online and finds two companies that offer different pricing options for car rentals. Company A charges $0.25 per mile plus a $50 rental fee. Company B charges $0.45 per mile plus a $20 rental fee.

Which statement is true about the pricing plans for Company A and Company B?
A) Company A is a better deal if Joseph drives 150 miles.
B) Company B is a better deal if Joseph drives 150 miles.
C) Company B is a better deal if Joseph drives more than 150 miles.
D) Company A is a better deal if Joseph drives less than 150 miles.
E) The price for traveling 150 miles is the same for both compan

Answer 1

E... (.25 × 150) + 50 = 87.5
(.45 × 150) + 20 = 87.5

Answer 2

E.The price for travelling 150 miles is same for both company.

Explanation:

We are given that Joseph is going on a trip and he needs to rent a car.

Company A

Charge $0.25 per mile plus $50 rental fee.

Company B charges 40.45 per mile plus $20 rental fee.

A.Total distance=150 miles

Company A

Charges for 150 miles=
`150* 0.25=`$37.5

Total charges=37.5+50=$87.5

Company B

Charges for 150 miles=
`150* 0.45`=$67.5

Total charge=20+67.5=$87.5

The price for travelling 150 miles is same for both company.

But if distance greater than 150 miles such 155 miles

Company A

Total charge=
`155* 0.25+50=`$88.75

Company B

Total charges=
`155* 0.45+20=`$89.75

Company A is better deal if Joseph more than 150 miles.

If distance 145 miles

Price form company A=
`145* 0.25+50=`$86.25

Price form company B=
`145* 0.45+20=`$85.25

Company B is better deal if Joseph travel less than 150 miles.

Hence, option E is true.