A car rental company offers two plans for renting a car.

Question

Plan A: 30 dollars per day and 16 cents per mile

Plan B: 50 dollars per day with free unlimited mileage

For what range of miles will plan B save you money for a 1 day rental?

Answer 1

30 + .16m = 50

16m = 20

m = 20/.16 = 2000/16 = 500/4 = 125 miles make A and B identically costly = $50= 30+125(.16)

for less than 125 miles A is cheaper/better

for more than 125 miles, B is cheaper/better