Question

Tony will rent a car for the weekend. He can choose one of two plans. The first plan has an initial fee of $60and costs an additional $0.50per mile driven

The second plan has noinitial fee and costs an additional $0.70per mile driven
E
For what amount of driving do the two plans cost the
Same

Answer 1

Plan 1:

Initial (fixed) fee: $60

Variable fee: $0.50 per mile

Plan 2:

Initial (fixed) fee: $0

Variable fee: $0.70 per mile

If we call x to the number of miles driven by Tony, then the cost of Plan 1 is:

P1 = 60 + 0.5x

The cost of Plan 2 is:

P2 = 0.7x

It's required to find the number of miles Tony should drive for both plans to cost the same, that is:

60 + 0.5x = 0.7x

Subtracting 0.5x:

60 = 0.7x - 0.5x

Operating:

60 = 0.2x

Dividing by 0.2:

x = 60 / 0.2

x = 300

Tony should drive 300 miles for both plans to cost the same.

Under that condition, both plans cost the same. Plan 1 cost:

P1 = 60 + 0.5*300

P1 = 60 + 150

P1 = $210

Plan 2 cost:

P2 = 0.7*300

P2 = $210

Both costs are equal