Saturday, July 10, 2010

A car rental company has two rental rates.?

A car rental company has two rental rates. Rate 1 is $35 per day plus$0.16 per mile. Rate 2 is $50 a day plus $0.09 per mile. If you plan to rent for one week, how many miles would you need to drive to pay less by taking rate 2?';A car rental company has two rental rates.?
At 214 Miles per day you will pay 0.02 higher at rate plan 2. Thus mile mark 215 makes the rates become cheaper with rate plan 2 and the more miles you use the better the value becomes.





The exact break even point for the 2 plans is 214.2856 Miles per day. Thus anything under that miles per day go with rate plan 1, anything over go with rate plan 2.A car rental company has two rental rates.?
If you drive 93.75 miles at .16 - equals the $15.00 dollar difference between the 35 and 50 rate. Unless you drive over 166 miles for the 50.00 dollar rate (166x.09=14.94) it will pay to get the cheaper 35.00 a day rate.
Just go to Enterprise and get the one-week unlimited mileage rate.
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