Ravi is going to rent a truck for one day. There are two companies he can choose from, and they have the following prices. Company A charges $90 and allows unlimited mileage. Company B has an initial fee of $55 and charges an additional $0.70 for every mile driven. For what mileage will Company A charge less than Company B?

1 answer

Let x be the mileage driven.

For Company A, the cost is a flat rate of $90 regardless of mileage.

For Company B, the cost is $55 + $0.70x.

We need to find the mileage at which Company A's cost is less than Company B's cost:

$90 < $55 + $0.70x
$35 < $0.70x
50 < x

Therefore, Company A will charge less than Company B for any mileage greater than 50 miles.