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8090 [49]
3 years ago
13

Natural gas is often priced in units of dollars per therm. One therm equals 100,000 BTUs . A certain family uses 600 therms of e

nergy to heat its home annually using a natural gas furnace that is 80 percent efficient. The family is considering replacing its current furnace with one that is 96 percent efficient. Assuming the cost of a therm is $0.30.
Required:
What would be the family's annual savings in the cost of home heating?
Business
1 answer:
ololo11 [35]3 years ago
7 0

Answer:

-$28.8.

Explanation:

Note, we were told,

  • to assume the cost of a therm is $0.30
  • the family uses 600 therms of energy annually.

<u>Savings on old furnace:</u>

  • 600 * $0.30 * 0.80 (or written as 80%) = $144

<u>Savings on new furnace:</u>

  • 600 * $0.30 * 0.96 (or written as 96%) = $172.8

Difference: $144 - $172.8 = -$28.8.

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