Plan A is $39.95 and is 5 cents per minute. Plan B is 59.95 and is 1 cent per minute.

Question

Use multi step equations to solve. Which plan is better?

Answer 1

Hi Alex,

 

This question involves creating a couple linear equations and finding the point when both plans are equal. 

Let's say "x" represents the minutes you spend on the phone. 

Plan A

Cost = 39.95 + 0.05x

Plan B

Cost = 59.95 + 0.01x

 

As you can see, plan A is cheaper to start but will cost more eventually, depending on how many minutes you spend on the phone. To find our when that is, set the equations equal to each other.

39.95 + 0.05x = 59.95 + 0.01x

Subtract 39.95 from both sides

0.05x = 20.00 + 0.01x

Subtract 0.01x from both sides

0.04x = 20.00

Divide both sides by 0.04

x=500

Therefore, 500 minutes is the break even point where both plans would cost the same. Less than 500 minutes, Plan A is cheaper because it has a lower start up cost (39.95). After 500 minutes, Plan B is cheaper because it has a lower cost per minute (0.01 cents/minute)

Hope that helps!