Question 662890
Suzanne is going to rent a car while she is out of town. One car rental company offers a flat rate of $35 per day plus $0.10 per mile. Another rental company offers the same car for $25 per day plus $0.25 per mile. She will need the car for 5 days. How many miles would she need to drive for the first car company to be the better deal?
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Car1 = 3500d + 10m
Car2 = 2500d + 25m
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C1 = C2
3500d + 10m = 2500d + 25m
1000d = 15m
d = 5
5000 = 15m
m = 5000/15 = 1000/3 miles the costs are equal
If she drives more than 1000/3 miles, Car 1 is the better deal (least cost)
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Car 2 might be a better car, or have a GPS, or some other factor.
$ per day and $ per mile only deal with costs, not comfort or convenience.
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In any case, NEVER buy the insurance from a rental agency.