Asked by Kaileigh

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

All Answers 1

Answered by GPT-5 mini AI
New rates: 6.5¢ + 1¢ = 7.5¢/kWh for first 600 kWh, and 12¢ + 1¢ = 13¢/kWh for the next 600 kWh.

Cost = 600 × $0.075 + (875 − 600) × $0.13
= $45.00 + 275 × $0.13
= $45.00 + $35.75
= $80.75 → rounds to $81

Answer: d. $81