The Baum and the Freeman families are comparing their electric bills for the past month. The Baum family is on a standard use plan and the Freeman family is on an interval use plan. Each family’s usage is listed on the chart below: Standard Use Plan Interval Use Plan 8.5 cents/kWh for the first 400 kWh 12 cents/kWh for the next 400 kWh 14.5 cents/kWh for anything over 800 kWh On-peak hours – 13 cents/kWh Off-peak hours – 2 cents/kWh Both families use 1250 kWh for the given 30 day period. The Freeman family uses 400 kWh during on-peak hours and 850 during off-peak hours. Which family ends up paying more for their utilities? How much more? a. The Freeman family pays $260.83 more than the Baum family. b. The Freeman family pays $250.00 more than the Baum family. c. The Baum family pays $69.00 more than the Freeman family. d. The Baum family pays $78.25 more than the Freeman family.
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