Question
Aaron can join a gym that charges $19.99 per month plus an annual $12.80 fee , or he can pay $21.59 per month. he thinks the second option is better because he plans to use the gym for 10 months. Is Aaron correct ? Explain.
Hint:
1. Total monthly charges = Number of months of using the gym * per month charges
2. Total cost = Annual fees + Total monthly charges
The correct answer is: the cost of option 2 is more than option 1 by $ 3.2 ($ 215.9 - $ 212.7) for 10 months of using the gym, Aaron is wrong.
Step-by-step solution:-
From the given information, we get-
Annual fees of option 1 = $ 12.80
Monthly fees of option 1 = $ 19.99 per month
Annual fees of option 2 = 0
Monthly fees of option 1 = $ 21.59 per month
Now, we know that-
Monthly charges for option 1 = Number of months of using the gym × price per month
∴ Monthly charges for option 1 = 10 × 19.99 ..................................................................................... (From given information)
∴ Monthly charges for option 1 = 199.9 ............................................................................................ (Equation i)
Total cost for option 1 = Annual fees + Monthly charges
∴ Total cost for option 1 = 12.80 + 199.9 .............................................................................. (From given information & Equation i)
∴ Total cost for option 1 = 212.7 ..................................................................................................... (Equation ii)
Also,
Monthly charges for option 2 = Number of months of using the gym × price per month
∴ Monthly charges for option 2 = 10 × 21.59 ..................................................................................... (From given information)
∴ Monthly charges for option 2 = 215.9 ............................................................................................ (Equation iii)
Total cost for option 2 = Annual fees + Monthly charges
∴ Total cost for option 2 = 0 + 215.9 ..................................................................................... (From given information & Equation iii)
∴ Total cost for option 2 = 215.9 ..................................................................................................... (Equation iv)
Final Answer:-
∴ Since, the cost of option 2 is more than option 1 by $ 3.2 ($ 215.9 - $ 212.7) for 10 months of using the gym, Aaron is wrong.
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Jamie will choose between two catering companies for an upcoming party. Company A charges a set up fee of $ 500 plus $25 for each guest. Company B charges a set up fee of $200 plus $ 30 per guest
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b) Jamie learns that the $ 500 set up fee for company A includes payment for 20 guests. The $25 per guests charge is for every guest over the first 20.If there will be 50 guests , which company will cost the least ? Explain.
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