A construction firm is trying to decide which of two models of a crane to purchase. Model A costs $98,000 and requires $4,000 per year to maintain. Model B has an initial cost of $60,000 and a maintenance cost of $12,000 per year. For how many years must model A be used before it becomes more economical than B?

Question

anonymous · Answer

98000 + 4000x = 60000 + 12000x
-60k from each side
38000 + 4000x = 12000x
-4000x from each side
38000 = 8000x (or 38 = 8x and divide by 8)
Divide by 8000 
4.75 = x  , so 4.75 years