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Gym A charges an initial fee of $10 and $12 per month of membership. Gym B charges an initial fee of $50 and $8 per month of membership. Complete the following statements about Gym A and Gym B:

OPTION 1: Gym A has a lower initial fee and higher monthly charges than Gym B.
OPTION 2: Gym A has a higher initial fee and lower monthly charges than Gym B.
OPTION 3: Gym A and Gym B have the same initial fee, but Gym A has higher monthly charges.
OPTION 4: Gym A and Gym B have the same initial fee, but Gym B has higher monthly charges.

User Mluc
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1 Answer

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Final answer:

Gym A has a lower initial fee of $10 and higher monthly charges of $12 compared to Gym B, which has a $50 initial fee and $8 monthly charges, making OPTION 1 the correct choice.

Step-by-step explanation:

When comparing the costs of Gym A and Gym B, it's important to distinguish between the initial fees and the recurring monthly charges. Gym A charges a lower initial fee of $10 compared to Gym B's initial fee of $50. However, for monthly membership, Gym A has a higher charge of $12 per month, whereas Gym B charges $8 per month. Therefore, the correct statement is:

OPTION 1: Gym A has a lower initial fee and higher monthly charges than Gym B.

Understanding cost structures like these helps in making financially savvy decisions and analyzing the break-even point at which the costs of both gyms would equate over time.

User PeterClemmensen
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