Phone contract
Sajid is planning to purchase a new mobile phone contract.
In a month Sajid sends approximately \(700\) texts and uses \(300\) minutes call time.
He is considering the following three options:
| Company A | Company B | Company C | |
| Texts | 300 free. \(5p\) per additional text | 500 free. \(5p\) per additional text | 1000 free. \(20p\) per additional text |
| Calls | 500 minutes free: \(20p\) per additional minute | 200 minutes free: \(15p\) per additional minute | \(10p\) for each minute |
| Monthly cost | \(\pounds25\) | \(\pounds25\) | \(\pounds25\) |
| Texts | |
| Company A | 300 free. \(5p\) per additional text |
| Company B | 500 free. \(5p\) per additional text |
| Company C | 1000 free. \(20p\) per additional text |
| Calls | |
| Company A | 500 minutes free: \(20p\) per additional minute |
| Company B | 200 minutes free: \(15p\) per additional minute |
| Company C | \(10p\) for each minute |
| Monthly cost | |
| Company A | \(\pounds25\) |
| Company B | \(\pounds25\) |
| Company C | \(\pounds25\) |
Sajid wants to choose the cheapest deal for his approximate usage. Which company should he choose?
Each phone company charges \(\pounds25\) per month in their contract.
As this is the same for each company this cost can be excluded when making comparisons.
Cost for Company A
Sajid would receive \(300\) free texts. Therefore he would be charged for a further \(400\) texts.
Text cost \(= 400 \times 5p = 2000p = \pounds20\)
Sajid would receive \(500\) free minutes which exceeds his approximate usage.
Call costs \(= \pounds0\)
Total cost \(= \pounds20\)
Cost for Company B
Sajid would receive \(500\) free texts. Therefore he would be charged for a further \(200\) texts.
Text cost \(= 200 \times 5p = 1000p = \pounds10\)
Sajid would receive \(200\) free minutes. Therefore he would be charged for a further \(100\) minutes.
Call costs \(= 100 \times 15p = \pounds15\)
Total cost \(= \pounds10 + \pounds15 = \pounds25\)
Cost for Company C
Sajid would receive \(1000\) free texts which exceeds his approximate usage.
Text cost \(= \pounds0\)
Sajid would receive no free minutes. Therefore he would be charged for \(300\) minutes.
Call costs \(= 300 \times 10p = 3000p = \pounds30\)
Total cost \(= \pounds30\)
Company A would provide the best deal for Sajid's approximate usage.