Final answer:
It takes 25 months for the cost of Cell phone Plan B, with the additional cost of the $500 phone, to equal the cost of Cell phone Plan A.
Step-by-step explanation:
To determine after how many months the cost of Cell phone Plan A equals the cost of Cell phone Plan B when buying a $500 phone, we need to set up an equation. Let's define the number of months as x.
For Plan A, since it costs $70 per month and comes with a free phone, the cost after x months would be:
Cost of Plan A = $70 * x
For Plan B, since it costs $50 per month and requires buying a $500 phone, the cost after x months would be:
Cost of Plan B = $500 + $50 * x
To find the number of months where the costs are the same, we set the two equations equal to each other:
$70 * x = $500 + $50 * x
Now we solve for x:
$70x - $50x = $500
$20x = $500
x = $500 / $20
x = 25
Therefore, it takes 25 months for the costs of both plans to be the same.