An business development executive travels extensively for bu

An business development executive travels extensively for business. Her company offers two options to offset her driving expenses. Option 1 provides a car allowance of 490 dollars per month and a mileage reimbursement of $0.34/mile for fuel, insurance, and maintenance costs. Option 2 provides a mileage reimbursement of $0.73/mile to cover all expenses associated with owning a car.How many miles would she have to drive each YEAR for the two options to be of equal value. Express your answer in miles to the nearest whole mile.

Solution

Make Option 1 and Option 2 at par to calculate the miles an business development executive would have to drive each year for these two options to be of equal value.

Therefore, equations are framed as follows:-

490 * 12 + 0.34 * A = 0.73 A [ Let A denotes miles that would have to drive each year.]

5880 + 0.34 A = 0.73 A

A = 5880 / 0.39

A = 15076.92 i.e., 15077 miles (approx)

Conclusion:-  An business development executive would have to drive each year 15077 miles for the two options to be of equal value.