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: 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

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

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 $600\times7.5$ 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. $81$