Question

You are choosing between two different cell phone plans. The first plan charges a rate of 23 cents per minute. The second plan charges a monthly fee of $49.95 plus 9 cents per minute. How many minutes would you have to use in a month in order for the second plan to be preferable?

Answer 1

357 minutes

Explanation:

I subtracted 9 cents/minute from the 23 cents/minute to get 14 cents to get the difference between the two per minute charges. I then divided the monthly cost of $49.95 by .14 to get 356.79... So if you used 357 minutes in a month, the second plan would be 3 cents cheaper at $82.08 (.09 x 357= 32.13 + 49.95), vs. the first plan costing $82.11 (.23 x 357). At 356 minutes the first plan would still be cheaper.