Jamal has owned his home for about 5 years. his refrigerator needs to be replaced and jamal is thinking about buying an energy s
tar-labeled model that will save money on his utility bills. the model he is looking at costs $598 and advertises a cost of only 12 cents per day. jamal has calculated that he spends about $132 per year on his old refrigerator. how long would it take for the new refrigerator to pay for itself in lower utility costs? round to the nearest whole year. a. 7 years
b. 14 years
c. 5 years
d. 11 years
To calculate how long it would take for the new refrigerator to pay for
itself in lower utility costs, the cost of new refrigerator will be divided by lower utility cost per
year
Cost of new refrigerator = $598
TO CALCULATE LOWER UTILITY COST PER YEAR
At a cost of only 12 cents per day
Annual cost will be 12 X 365 = 4380 Cents ($43.8)
Cost saved annually = Cost of old refrigerator – Cost of new
refrigerator.
Lower utility cost per year = $132 – $43.8
Lower utility cost per year = $88.2
How long would it take for the new refrigerator to pay for
itself in lower utility costs?
Concentrated Marketing is a strategy whereby a product is developed and marketed for a very well defined and specific segment of the consumer population.
