Final answer:
To determine the maximum number of guests the family can invite, set up an inequality and solve it.
Step-by-step explanation:
To determine the maximum number of guests the family can invite, we need to set up an inequality based on their budget. Let's assume the number of guests they can invite is 'x'. The total cost will be $80 (rental fee) plus $12.50 per guest. This can be expressed as: 80 + 12.50x ≤ 200. Now, solve the inequality to find the maximum value of x.
Subtract 80 from both sides: 12.50x ≤ 120. Divide both sides by 12.50 to isolate x: x ≤ 9.6. Since you cannot have a fraction of a guest, the maximum number of guests they can invite is 9.