Question 1170963: A landlord pays for the consumption use of an appliance. The appliance uses 1000 kWh of electricity per year at a rate of 10.5 cents/kWh. The household receives a $68/month subsidy on its electricity charge. Taking the subsidy into account, what is the yearly cost for the landlord?
The first part of this calculation has been easy to figure out. However, I have been utterly stumped at how to find a way to solve the equation as a whole. I would greatly appreciate your assistance, and if you could teach me how you reach the answer that would be awesome. In gratitude .. John
Answer by math_tutor2020(3816)   (Show Source):
You can put this solution on YOUR website!
For now, ignore the subsidy
Total cost = (total number of kWh consumed)*(cost per kWh)
Total cost = (1000 kWh)*(10.5 cents per kWh)
Total cost = (1000 kWh)*(0.105 dollars per kWh)
Total cost = (1000*0.105) dollars
Total cost = 105 dollars
Now we can consider the subsidy
The landlord gets a $68 per month subsidy. On a yearly basis, this means the landlord gets 68*12 = 816 dollars from the government.
Since the total subsidy is larger than the total cost, this means one of two things may happen:- Case A) The landlord is able to pocket 816-105 = 711 dollars annually
- Case B) The government realizes the total subsidy outweighs the total cost, and will simply only pay $105 to the landlord. This will mean the landlord gets $0 in a net balance.
It's hard to say which event will happen. But let's say the government is simply writing checks for $68 per month blindly without checking to see if they go overboard or not. If so, then that would mean case A would happen, and the yearly cost to the landlord is -711 dollars. The negative cost means that money isn't flowing outward (from the landlord's perspective), but rather the other way around. I'm referring to the net amount of dollars of course.
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