Question

Two competing cable companies have recently restructured their payment plans. Clear TV requires a $30 activation fee and charges $75 per month for their basic plan. Link TV requires no activation fee and charges $82.50 per month for their basic plan. When will the two plans be equal in cost?

Answer 1

Clear TV:
Activation fee = $30
Monthly charge = $7

Link TV:
Activation fee = $0
Monthly Charge = $82.50

Let x be the number of month that the two cost will be equal

30 + 75x = 82.5x
82.5x - 75x = 30
7.5x = 30
x = 30 ÷ 7.5 = 4 months

The two plans will be of equal cost after 4 months.