Sunday, February 28, 2010

Car rental agency A will rent a compact car for $35 per day and an additional charge of $0.24 per mile.

Car rental agency B will charge only $0.16 per mile but charges $41 per day. If Adam wanted to rent a car for three days, how many miles would Adam have to drive to make car rental agency B a better bargain? Car rental agency A will rent a compact car for $35 per day and an additional charge of $0.24 per mile.
x = miles.





Agency A: 35(3) + 0.24x


Agency B: 41(3) + 0.16x





You want B to be cheaper, so


B %26lt; A


41(3) + 0.16x %26lt; 35(3) + 0.24x


123 + 0.16x %26lt; 105 + 0.24x


123 - 105 + 0.16x %26lt; 0.24x


18 + 0.16x %26lt; 0.24x


18 %26lt; 0.24x - 0.16x


18 %26lt; 0.08x


18(100) %26lt; (0.08)(100)x


1800 %26lt; 8x


1800 / 8 %26lt; x


225 %26lt; x





So, he needs to drive more than 225 miles to make B the better deal.Car rental agency A will rent a compact car for $35 per day and an additional charge of $0.24 per mile.
Rent a car that has unlimited miles, then you wont have to worry about it...besides, if you drive more than you have to just to make it worth while, you are paying for more fuel therefore your not getting any advantage.
The break-even point is the point at which


.16M + 3*41 = .24M + 3*35





.08M = 3*(41 - 35) = 18


M = 18/.08 = 225





A is cheaper at fewer than 225 miles


B is cheaper at more than 225 miles





Both cost $159 for exactly 225 miles.

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