Answer:
Month 8
In this month Company B's plan will pay $64,000 versus $45,000 from Company A.
Step-by-step explanation:
Start by calculating the monthly payments for both plans.
Month - Company A - Company B
1 $10,000 $500
2 $15,000 $1,000
3 $20,000 $2,000
4 $25,000 $4,000
5 $30,000 $8,000
6 $35,000 $16,000
7 $40,000 $32,000
8 $45,000 $64,000
9 $50,000 $128,000
10 $55,000 $256,000
11 $60,000 $512,000
12 $65,000 $1,024,000
13 $70,000 $2,048,000
14 $75,000 $4,096,000
15 $80,000 $8,192,000
16 $85,000 $16,384,000
17 $90,000 $32,768,000
18 $95,000 $65,536,000
19 $100,000 $131,072,000
20 $105,000 $262,144,000
21 $110,000 $524,288,000
22 $115,000 $1,048,576,000
23 $120,000 $2,097,152,000
24 $125,000 $4,194,304,000
Answer:
8th Month
Step-by-step explanation:
We will calculate the payments by both the method as shown below
Company A
$10,000 + $ 5000 = $ 15000
$ 15000 + $5000 = $20,000
$20,000+ $5000 = $25,000
$25,000 + $5000 = $30,000
$30,000 + $5000 = $35,000
$35,000 + $5000 = $40,000
$40,000 + $5000 = $45,000
$45,000 + $5000 = $45,000 = $ 50,000
$ 50,000 + $ 5000 = $ 55,000
Company B
$ 500
2 x $ 500 = $1000
2 x $1000 = $2000
2 x $2000 = $4000
2 x $4000 = $8000
2 x $8000 = $ 16,000
2 x $ 16,000 = $ 32,000
2 x $ 32,000 = $ 64,000
2 x $ 64,000 = $128,000
Thus, it is the 8th month during which Company B's payment first exceed Company A's payment
