Your Telephone Service Provider Charges a Fixed Monthly Fee of $85.00

question 227

Short Answer

Your telephone service provider charges a fixed monthly fee of $85.00 plus $0.25 cents per call for calls within Canada and $0.90 per minute for international calls. Under this plan what is your monthly phone cost if you make 160 calls within Canada and 200 minutes of international calls?

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Definitions:

Minimum Payments

The smallest amount of money that one is required to pay on a debt by a specified due date to avoid defaulting.

Interest Costs

The cost associated with borrowing funds, typically expressed as a percentage of the total amount borrowed.

Self-Interest

That which each firm, property owner, worker, and consumer believes is best for itself and seeks to obtain.

Behavioral Economists

Researchers who study the psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions and how those decisions vary from those implied by classical theory.