Question

bao has been notified by his electric company that his rates are going up on his graduated fee schedule. he currently pays: standard use plan 6.5 cents/kwh for the first 600 kwh 12 cents/kwh for the next 600 kwh if his rates go up 1 cent in each category, find how much he will pay if he uses 875 kwh per month. round to the nearest dollar. a. $72 b. $105 c. $66 d. $81

Explanation:

Step1: Calculate cost for first - tier

The new rate for the first 600 kWh is $(6.5 + 1)$ cents/kWh = 7.5 cents/kWh. The cost for the first 600 kWh is $600\times7.5$ cents=$4500$ cents.

Step2: Calculate remaining kWh

The amount of electricity used above 600 kWh is $875 - 600=275$ kWh.

Step3: Calculate cost for second - tier

The new rate for the second - tier (above 600 kWh) is $(12 + 1)$ cents/kWh = 13 cents/kWh. The cost for the 275 kWh is $275\times13$ cents = $3575$ cents.

Step4: Calculate total cost

The total cost in cents is $4500+3575 = 8075$ cents. Convert to dollars: $\frac{8075}{100}=80.75$ dollars. Rounding to the nearest dollar gives $81$ dollars.

Answer:

d. $81$