a truck can be rented from Company A for $150 a day plus $0.20 per mile. Company B charges $70 a day plus $0.40 per mile to rent th same truck.

Question

How many miles must be driven in a day to make the rental cost for Company A a better deal than Company B's?

 

please explain with steps for review

Answer 1

We know that Company B will be less expensive at first, but Company A will become a better option as the miles rack up. Eventually, Company A will be less expensive. There will be a point where the price will be the same for each company. 

 

150 + .20x = Company A

70 + .40x = Company B

 

If we set these two equations equal to each other, we find out when the price will be the same.

 

150 + .20x = 70 + .40x

 

If we solve for x, we find out how many miles must be driven in a day to make the rental cost the same. After that, Company A will be a better deal.