Question

Customers of a phone company can choose between two service plans for long-distance calls. The first plan has a $20 monthly fee and charges an additional $0.15 for each minute of calls. The second plan has an $11 monthly fee and charges an additional $0.19 for each minute of calls. For how many minutes of calls will the costs of the two plans be equal?

Options:

A) 60 minutes
B) 75 minutes
C) 80 minutes
D) 100 minutes

Answer 1

If the calls are done for D. 100 minutes, the difference will be of $5.

How calling plans are calculated?

If first plan is chosen this will cost monthly fees of $20 and $0.15 for each minute, (20+(0.15*100)) will cost $35 while for 100 minutes the second plan would cost $30 (11+(0.19*100)). The difference between the two plans will be minimum at 100 minutes that is $5, which is that nearly the two plans will cost about the same to the customer.

If the customer wants to make more calls, they should select first plan and if they want to make less calls then they should select the second plan.