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XYZ Phone service charges $0.12 per minute with a monthly charge of $6.95. This fee is valid 24 hours, 7 days a week. ABC Phone company offers no monthly charge and a rate of $0.20 per minute from 7 a.m. to 7 p.m. and $0.09 from 7 p.m. and 7 a.m. If you average 3 hours of calls during the day and 3 hours of calls at night per month, which phone service should you choose?

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Below are the choices:

a) ABC phone service b) XYZ phone service 
c)no difference d)depends on the number of days of the month


Below is the solution:

 XYZ = 6.95 + 0.12(6)(60) = $50.15 
ABC = 0.20(3)(60) + 0.09(3)(60) = 36.00 + 16.20 = $52.20 
answer (a) 

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