bao has been notified by his electric company that his rates are going up on his graduated fee schedule. he…

bao has been notified by his electric company that his rates are going up on his graduated fee schedule. he currently pays:\nstandard use plan\n6.5 cents/kwh for the first 600 kwh\n12 cents/kwh for the next 600 kwh\nif 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.\na. $72\nb. $105\nc. $66\nd. $81

bao has been notified by his electric company that his rates are going up on his graduated fee schedule. he currently pays:\nstandard use plan\n6.5 cents/kwh for the first 600 kwh\n12 cents/kwh for the next 600 kwh\nif 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.\na. $72\nb. $105\nc. $66\nd. $81

Answer

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 $7.5\times600=4500$ cents.

Step2: Calculate remaining kWh

The total usage is 875 kWh. After using 600 kWh in the first - tier, the remaining kWh is $875 - 600=275$ kWh.

Step3: Calculate cost for second - tier

The new rate for the second - tier (after the first 600 kWh) is $(12 + 1)$ cents/kWh = 13 cents/kWh. The cost for the 275 kWh in the second - tier is $13\times275 = 3575$ cents.

Step4: Calculate total cost

The total cost in cents is $4500+3575 = 8075$ cents. To convert cents to dollars, divide by 100: $\frac{8075}{100}=80.75\approx81$ dollars.

Answer:

d. $81