What FORMULA would you use to calulate

Submitted by rwmv on Sat, 04/27/2013 - 11:16

 here is the question:

 

You are trying to decide whether to lease  or buy an item for your project. The daily lease cost is $120. To purchase the item the investment cost is $1000 and the daily cost is $20. How long will it take for the lease cost to be same as the purchase cost?

I got the answer right that I would go with purchasing but didn't use any formula.

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sspawar

Sat, 04/27/2013 - 12:09

 Break Even Point formula

here number of days is to know.

suppose

= D days

frame a formula

120*D = 1000 +20*D

D = 10 days