130k views
0 votes
You decide to purchase a new refrigerator. You have the choice of an Energy Star refrigerator for $2,000 or a standard unit for $1,800. The Energy Star unit costs 10 cents per hour less to run. If you buy the Energy Star unit and run it for 10 hours per day for a year, how long will it take you to recover the $200 extra cost

User Maynard
by
3.4k points

1 Answer

3 votes

Answer:

It will take 83 days to recover the extra cost

Step-by-step explanation:

To determine the length of time it will take to recover the extra cost, it will be logical that we compare the $200 extra cost to the total savings in running cost made for a year and covert this into days

The total savings in running cost is the cost savings per hour multiplied by the number of hours in a year.

The calculations are set below:

Savings in running cost per hour = $0.1

Total savings in a year = 365 days × $0.1 × 24 = $876

Extra cost of Energy Star refrigerator = $200

If total savings for a year is $876 , then equivalent length of time to save $200 would be

Length of time = 200/876 × 365 days = 83 days

It will take 83 days to recover the extra cost

User Levand
by
3.0k points