Let us say that m is the number of months. So that the equations for option 1 (O1) and option 2 (O2) are:
O1 = 30 m + 100
O2 = 25 m + 150
TO determine this, we equate O1 and O2 so that:
30 m + 100 = 25 m + 150
5 m = 50
m = 10
So at the 10th month, the cost for both options are equal. So we select month 11.
Answer:
D) month 11