Question

Anna wants to rent movies from either Service A or Service B. Service A charges $37.92 as a subscription fee with a charge of $2.18 per movie. Service B charges $33.25 as a subscription fee plus $3.55 per movie. Service B is running a special offer where the first movie is free.

Answer 1

If you wanna know which one's better, you've gotta formulate them both. Let's say x is the number of movies you rented.

A: 37.92+2.18x

B: 33.25+3.55(x-1)

A B

1. 40.10 33.25
2. 42.28 36.80

Keep going on to see that B is better in the short term, but A is better long term.