An business development executive travels extensively for business. Her company offers two options to offset her driving expenses. Option 1 provides a car allowance of 510 dollars per month and a mileage reimbursement of $0.38/mile for fuel, insurance, and maintenance costs. Option 2 provides a mileage reimbursement of $0.65/mile to cover all expenses associated with owning a car. How many miles would she have to drive each YEAR for the two options to be of equal value. Express your answer in miles to the nearest whole mile.

Question

Guillermo

Mathematics

24 November, 14:12

An business development executive travels extensively for business. Her company offers two options to offset her driving expenses. Option 1 provides a car allowance of 510 dollars per month and a mileage reimbursement of $0.38/mile for fuel, insurance, and maintenance costs. Option 2 provides a mileage reimbursement of $0.65/mile to cover all expenses associated with owning a car. How many miles would she have to drive each YEAR for the two options to be of equal value. Express your answer in miles to the nearest whole mile.

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Answers (1)

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Ayaan Anderson · Answer 1

Answer: 26667 miles

Step-by-step explanation:

According to the statement,

In option 1 we have 510 dollars per month plus $0.38/mile.

In option 2 we have $0.65/mile

Let x be the number of miles.

For a whole year, the option 1 is 510*12 + 0.38 x

For a whole year, the option 2 is 0.65 x

Equating both, we get

6120 + 0.38 x = 0.65 x

Solving, we get

x = 6120 / 0.27

x = 22666.67

x = 26667 miles