Question

You can purchase an item you need for a project for $10,000 and it has daily operating costs of $500, or you can lease the item for $700 per day. On which day will the purchase cost be the same as the lease cost?

Answer 1

On the 50th day, the purchase cost will be equal to the lease cost

Step-by-step explanation:

Given that:

• Daily operating costs of $500
• Purchasing cost for the item: $10,000
• Lease amount: $700

Let x is the number of days the purchase cost be the same as the lease cost. As we now that:

The total cost should be equal to the total lease received

<=> 10,000 + 500x = 700x

<=> 200x = 10000

<=> x = 50

Hence, on the 50th day, the purchase cost will be equal to the lease cost