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Comparing two parking garage plans

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A downtown employee is looking for the best option for parking a car during an 8-hour workday. One parking garage offers unlimited parking at a $120 per month. Another garage offers an hourly rate of $2.50 for parking.
Draw a graph comparing the two parking plans. Under what circumstances would the monthly plan be cheaper? Under what circumstances would the hourly plan be cheaper?

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Solution Summary

This solution shows how to algebraically compare the cost of parking under an hourly plan and under a monthly plan. The solution is illustrated with a graph in Microsoft Excel and all calculations are fully explained.

Solution Preview

The number of hours parked per day is constant at 8. The cost of parking for 1 day under the hourly rate is therefore ($2.50 * 8 =) $20 per day. The ...

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