Question

Two companies offer online gaming subscriptions. Company A charges $75 upfront and then $20 a month. Company B does not charge an upfront fee but charges $35 a month. After how many months will the two companies charge the same amount?

Answer 1

After 5 months each company will charge the same amount

Explanation:

Math Modeling

The situation raised in the question can be modeled as follows.

Company A charges $75 upfront (flat or fixed fee) plus $20 a month. Being x the number of months of subscription, the total charge Ca is:

Ca = 75 + 20x

Company B charges no upfront fees, and $35 a month. We model its charges Cb as:

Cb = 35x

We want to know the number of months needed to make both companies charge the same amount. We'll do that by equating Ca=Cb:

75 + 20x = 35x

Subtracting 20x:

75 = 35x - 20x

Swapping and simplifying:

15x = 75

Solving:

x=75 / 15

x=5

After 5 months each company will charge the same amount