Question

A toll road company has two plans for customers. One plan charges $10 per month for rental of a transponder (a box that identifies your car on the toll roads) plus $0.60 per mile driven. The second plan does not require that you rent a transponder. Instead, it charges customers $0.75 per mile driven on the toll road. Find the minimum number of miles you would need to drive in a month to make the first deal a better deal.

Answer 1

The minimum number of miles you would need to drive in a month to make the first deal a better deal is 66.6 miles.

Explanation:

For the first deal to be a better deal it has to cost less than the second plan and you can write an equation in which the first plan has a lower cost than the second one:

10+0.60m<0.75m, where:

m is the number of miles driven

Now, you can solve for m:

10<0.75m-0.60m

10<0.15m

10/0.15<m

m>66.6

According to this, the answer is that the minimum number of miles you would need to drive in a month to make the first deal a better deal is 66.6 miles.