jack is trying to determine how he can save money by cutting his electricity bill. he is currently on a…

jack is trying to determine how he can save money by cutting his electricity bill. he is currently on a standard use plan for electricity and pays 7.5 cents per kwh. he keeps track of when he uses electricity and is thinking about switching to an interval use plan for electricity which costs 3 cents per kwh for off - peak use and 15 cents per kwh for on - peak use. off - peak hours are from 8pm - 8am and on - peak hours are from 8am - 8pm. below is the chart of his electricity usage: jacks electricity usage per month 1200 kwh between 8pm and 8am 400 kwh between 8am and 8pm. explain and justify which plan would best suit his needs. a. jack should not switch to the interval use plan, which would cost $24 more per month. b. jack should switch to the interval use plan, which would save him $24 per month. c. jack should switch to the interval use plan, which would save him $96 per month. d. jack should not switch to the interval use plan, which would cost $96 more per month.

jack is trying to determine how he can save money by cutting his electricity bill. he is currently on a standard use plan for electricity and pays 7.5 cents per kwh. he keeps track of when he uses electricity and is thinking about switching to an interval use plan for electricity which costs 3 cents per kwh for off - peak use and 15 cents per kwh for on - peak use. off - peak hours are from 8pm - 8am and on - peak hours are from 8am - 8pm. below is the chart of his electricity usage: jacks electricity usage per month 1200 kwh between 8pm and 8am 400 kwh between 8am and 8pm. explain and justify which plan would best suit his needs. a. jack should not switch to the interval use plan, which would cost $24 more per month. b. jack should switch to the interval use plan, which would save him $24 per month. c. jack should switch to the interval use plan, which would save him $96 per month. d. jack should not switch to the interval use plan, which would cost $96 more per month.

Answer

Explanation:

Step1: Calculate cost of standard use plan

Total electricity usage = (1200 + 400=1600) kWh. Cost per kWh is 7.5 cents or ($0.075). So cost of standard plan (C_{s}=1600\times0.075=$120).

Step2: Calculate cost of interval - use plan

Off - peak cost: (1200\times0.03=$36). On - peak cost: (400\times0.15 = $60). Total cost of interval plan (C_{i}=36 + 60=$96).

Step3: Calculate savings

Savings (S=C_{s}-C_{i}=120 - 96=$24).

Answer:

B. Jack should switch to the interval use plan, which would save him $24 per month.