Question

You are choosing between two different cell phone plans. The first plan charges a rate of 24 cents per minute. The second plan charges a monthly fee of $39.95 plus 10 cents per minute. How many minutes would you have to use in a month in order for the second plan to be preferable?

Answer 1

286 minutes.

Explanation:

Plan one: .24x

Plan two: 39.95 + .10x

When x = 286, the price of plan one is $68.64, which is higher than plan two which is $68.55. This makes the second plan preferable after 286 minutes of use.

Answer 2

Answer: 286 minutes

Explanation:

x : # of months that has gone by

0.24x : cost of the 24 cent plan after "x" minutes

39.95 + 0.10x : cost of the 10 cent plan after "x" minutes

1. 39.95 + 0.10x > 0.24x

2. 39.95 > 0.24x - 0.10x

3. 39.95 > 0.14x

4. 285.36 > x

x must be AT LEAST 286 minutes for plan #2 (39.95 + 0.10x) to be a better deal