Question

They estimate that their current (older) fridge, which they got for free, costs them about $17 a month in electricity charges to operate. They found a new fridge that costs $1,050 to purchase and would cost only around $6 a month in electricity charges.
The new fridge comes with a 10-year warranty, so they assume the new fridge to last for 10 years without any extra repair or replacement fees.

If they keep their old fridge, then they assume they will need to pay around $220 sometime over the next 10 years in maintenance costs to keep it running.

(For this comparison, assume they set aside the money to maintain the old fridge right at the beginning of the 10 years, even though they probably won't need the money until several years later.)



Let x represent the number of months. Let y represent total cost in dollars.

Step 3: Apply Quantitative Tools

Set up a system of equations that could be used to help Garrett and Judy Kay decide if buying the new fridge is worth it.

Create functions that describe the total cost in dollars for each fridge.

New Fridge Total Cost Function

Answer 1

Step-by-step explanation:

Step one:

given

current (older) fridge

electricity charges= $17 monthly

maintenance costs= $220

let the number of months be x

and the total cost be yo

the expression for the cost for the old fridge is

yo=220+17x---------1

New  fridge

electricity charges= $6 monthly

costs=  $1,050

let the number of months be x

and the total cost be yn

the expression for the cost for the old fridge is

yn= 1050+6x---------2

Hence the system of equation for the situation is

yo=220+17x---------1

yn= 1050+6x---------2

Step two

for 10 years there are 12*10= 120 months

put x= 120 in both expressions and compare the total

yo=220+17(120)---------1

yo=220+2040

yo=$2,260

yn= 1050+6(120)---------2

yn=1050+720

yn=$1770

Based on the analysis it will be less expensive to get the new fridge, hence buying the new fridge is worth it.