SOLUTION: For business purposes Mr. John Smith wants to determine the difference between the costs of owning, and renting an automobile. He can rent a car for $140 per month on an annual bas

Question 254890: For business purposes Mr. John Smith wants to determine the difference between the costs of owning, and renting an automobile. He can rent a car for $140 per month on an annual base. Under this plan his cost per mile for gas and oil is $ 0.05. If he were to purchase the car, his fixed annual expense would be $ 1000 and other costs would amount to $ 0.1 per mile. What is the least number of miles he would have to drive per year to make renting no more expensive than purchasing? Approach the questions using EXEL.
Answer by CharlesG2(834) (Show Source): You can put this solution on YOUR website!
For business purposes Mr. John Smith wants to determine the difference between the costs of owning, and renting an automobile. He can rent a car for $140 per month on an annual base. Under this plan his cost per mile for gas and oil is $ 0.05. If he were to purchase the car, his fixed annual expense would be $ 1000 and other costs would amount to $ 0.1 per mile. What is the least number of miles he would have to drive per year to make renting no more expensive than purchasing? Approach the questions using EXEL.
EXEL should be EXCEL
rent: $140/month * 12 months/year = 140*12 = $1680/year
x=number of miles
1680+0.05*x
purchase: 1000+0.1*x
set these equal to each other and solve for x
1680+0.05*x=1000+0.1*x
put x's on one side and constants on the other
680=0.1*x-0.05*x=0.05*x
680/0.05 = x
x=13600

miles cost renting cost purchasing
x 1680+0.05x 1000+0.1x
0 1680 1000
1000 1730 1100
2000 1780 1200
3000 1830 1300
4000 1880 1400
5000 1930 1500
6000 1980 1600
7000 2030 1700
8000 2080 1800
9000 2130 1900
10000 2180 2000
11000 2230 2100
12000 2280 2200
13000 2330 2300
13100 2335 2310
13200 2340 2320
13300 2345 2330
13400 2350 2340
13500 2355 2350
13600 2360 2360

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