You are choosing between two different cell phone plans. The first plan charges a rate of 23 cents per minute. The second plan charges a monthly fee of $29.95 plus 8 cents per minute.

Question

You are choosing between two different cell phone plans. The first plan charges a rate of 23 cents per minute. The second plan charges a monthly fee of $29.95 plus 8 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

Let's let X = the number of minutes

The cost of the first plan:

0.23X

The cost of the second plan:

29.95 + 0.08X

We want to find X when the two plans have equal cost

0.23X = 29.95 + 0.08X

- 0.08X - 0.08X Subtract 0.08X from both sides

------------------------------------

0.15X = 29.95

X = 29.95 / 0.15 = 199.667

We round up to the nearest who number which is 200 minutes