A business executive leases a car for $260 per month. She decides to lease another brand for $200 per month but has to pay a penalty of $1500 for breaking the first lease. How long must she keep the second car to come out ahead?

Question

anonymous · Answer

Seems straight forward, but what are they asking me?

anonymous · Answer

Divide the savings per month, $260-$200, into the $1500 penalty to determine the number of months required to break even on the "other brand".
$$\frac{1500}{60}=25\text{ months} $$

anonymous · Answer

The executive would begin to save money in the 26th month.