27
QuizMultiple Choice

Home Ownership

Question 27 • Financial Math - MA2007

The Reed and the Merrill families are comparing their utility costs for the past month. The following is a list of the appliances that the families are using to make their comparisons:Reed Family AppliancesMerrill Family AppliancesGas range5 cents per dayElectric range13 cents per dayGas dryer - 1 load per day10 cents per loadGas dryer - 1 load per day10 cents per loadElectric water heater90 cents per dayGas water heater40 cents per dayTypical later model refrigerator16 cents per dayEnergy Star-labeled refrigerator12 cents per dayAssuming that the families use the same appliances in the same way, who spends more to run these appliances in a given 30 day period and by how much?

Answer
A
The Reed family spends $13.80 more than the Merrill family.
B
The Reed family spends $0.46 more than the Merrill family.
C
The Merrill family spends $58.80 more than the Reed family.
D
The Merrill family spends $18.60 more than the Reed family.

Explanation

The Reed family’s appliances cost 5 + 10 + 90 + 16 = 121 cents per day. The Merrill family’s cost 13 + 10 + 40 + 12 = 75 cents per day, so Reed spends 121 − 75 = 46 cents more each day. Over 30 days, 46 × 30 = 1,380 cents, or $13.80, so the Reed family spends $13.80 more.

AI-written and checked against the verified answer.

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