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3 October, 11:27

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

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  1. 3 October, 14:25
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    1) Consumption: 875 kWh / month

    2) New rate:

    - 7.5 cents / kWh for the first 600 kWh

    - 13.0 cents / kWh the next 600 kWh

    3) Calculation:

    600 kWh * 7.5 cents / kWh + (875 kWh - 600 kWh) * 13.0 cents / kWh.

    4500 cents + 3575 cents = 8075 cents = $ 80.75, which rounded to the nearest dolar is $ 81.

    Answer: option d. $81.
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