Question

Please I need help and the calculation of which contract is better.

The monthly contract I am considering costs $30 per month with 75 minutes of free calls and 100 free text messages. Additional calls cost 10¢ per minute and additional text messages 10¢ each. An alternative is ‘Pay as you go’ which has no monthly charge but all calls cost 30¢ per minute and texts cost 10¢ each. I typically make 100 minutes of calls and 60 text messages each month. Which would be the better contract for me and by how much?

Answer 1

You should go with the 1st, because it's cheaper.

Explanation:

1st plan:

30$ which include 75 mins of free calls and 100 free text messages

25 more mins * 10¢ /min(0.1$/min) = 2.5$

You will pay 32.5$

2nd plan:

(calls)100*0.3$=30$

(text messages)100 * 0.1$=10$

30+10 = 40$