Zeenat must choose the cheapest long distance phone plan for her family. Her first option is a cost of four cents per minute for any phone call that is defined as long distance. The second option comes in the form of a device that has an initial cost of $19.95. The device plugs into her internet and with each long distance phone call she is charged an additional fee of 1.5 cents per minute. Zeenat's family makes on average 50 min of long distance phone calls per month. After one year of service which option would provide Zeenat's family with the least expensive approach on a per annum basis?

Let's compare the costs of the two options for Zeenat's family over one year (12 months).

### Option 1: Cost per Minute Plan
- **Cost per minute**: 4 cents
- **Minutes per month**: 50 minutes

The monthly cost for this plan is:
\[
\text{Monthly cost} = 50 \times 0.04 = 2 \text{ dollars}
\]
The annual cost for this plan is:
\[
\text{Annual cost} = 12 \times 2 = 24 \text{ dollars}
\]

### Option 2: Device with Initial Cost and Lower Cost per Minute
- **Initial cost of the device**: $19.95
- **Cost per minute**: 1.5 cents
- **Minutes per month**: 50 minutes

The monthly cost for this plan is:
\[
\text{Monthly cost} = 50 \times 0.015 = 0.75 \text{ dollars}
\]
The total annual cost for the calls is:
\[
\text{Annual cost for calls} = 12 \times 0.75 = 9 \text{ dollars}
\]
Including the initial cost of the device, the total annual cost is:
\[
\text{Total annual cost} = 19.95 + 9 = 28.95 \text{ dollars}
\]

### Comparison:
- **Option 1**: $24 per year
- **Option 2**: $28.95 per year

### Conclusion:
**Option 1** (4 cents per minute with no device) is the cheaper option, costing $24 per year, compared to Option 2, which costs $28.95 per year.

Would you like more details or have any questions?

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Here are 5 related questions:

1. What would be the breakeven point in terms of minutes per month where both options would cost the same?
2. How much would Option 2 cost if Zeenat's family made 100 minutes of calls per month?
3. What would be the total cost difference after two years of service?
4. How would the costs change if the initial cost of the device in Option 2 were reduced by $5?
5. What would be the impact if Zeenat’s family increased their calling time by 20 minutes per month?

**Tip:** When comparing costs, consider both fixed and variable expenses to understand the overall financial impact.

Compare the costs of two long distance phone plans for Zeenat's family: a plan with 4 cents per minute and another with a $19.95 device plus 1.5 cents per minute. Find out which option is more cost-effective after one year with 50 minutes of calls per month. Suitable for Grades 7-9.

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