You are choosing between two different cell phone plans. The first plan charges a rate of 22 cents per minute.

Question

You are choosing between two different cell phone plans. The first plan charges a rate of 22 cents per minute. The second plan charges a monthly fee of $39.95 plus 11 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

0.22X = 0.11X + 39.95

22x = 11x + 3995

11x = 3995

x = 363.18

0.22 * 363.18 = 79.90

0.11 * 363.18 + 39.95 = 79.90

0.18 = 18/99*60 sec/min is about 11 seconds

So at 363 minutes and 11 seconds, the plans cost the same price.

At 500 minutes, plan A costs 0.22*500 = $110 while plan B costs 0.11*500 + 39.95 = 94.95

So 363 minutes and 11 seconds or MORE the plan B is better.