Question

Two payment options to rent a car: You can pay $25 a day plus 5¢ a mile (Option A) or pay $15 a day plus 30¢ a mile (Option B). For what amount of daily miles will option B be the cheaper plan?

Answer 1

First, let's define some variables:

D = number of daily miles
A = total cost of Option A
B = total cost of Option B

We can express the total cost of Option A and Option B in terms of D as follows:

A = $25 + 0.05D
B = $15 + 0.30D

To find the amount of daily miles for which Option B is cheaper, we need to set A equal to B and solve for D:

$25 + 0.05D = $15 + 0.30D
0.25D = $10
D = 40 miles

Therefore, Option B is cheaper for 40 daily miles or less.