SOLUTION: Alicia has invented a new app for smart phones that two companies are interested in purchasing for a 2-year contract. Company A is offering her $10,000 for the first month and w

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Question 1176384: Alicia has invented a new app for smart phones that two companies are interested in purchasing for a 2-year contract.
Company A is offering her $10,000 for the first month and will increase the amount each month by $5,000.
Company B is offering $500 for the first month and will double their payment each month from the previous month.
Monthly payments are made at the end of each month. For which monthly payment will company B’s payment first exceed company A’s payment?
a)6
b)7
c)8
d)9
Answer by MathLover1(20850) About Me  (Show Source):
You can put this solution on YOUR website!
Company A is offering her $10000 for the first month and will increase the amount each month by $5000.
Company B is offering $500 for the first month and will double their payment each month from the previous month.

number of months.....Company A.................Company B+
1................................$10000.......................$500
2................................$15000.......................$1000
3................................$20000.......................$2000
4................................$25000.......................$4000
5................................$30000.......................$8000
6................................$35000.......................$16000
7................................$40000.......................$32000
highlight%288%29................................$45000.......................$64000

so, answer is c)8