The cumulative costs of a tankless water heater and tank water heater are $4,090 each at the end of the 7th year of use. The cumulative costs of the tankless heater increase $180 per year, but for the tank heater, they increase by 11% per year. By the end of the 10th year, about how much more will the cumulative costs of the tank heater be than those of the tankless heater?Choose 1 answer:(A) $964(B) $1,504(C) $4,625(D) $5,723
Q. The cumulative costs of a tankless water heater and tank water heater are $4,090 each at the end of the 7th year of use. The cumulative costs of the tankless heater increase $180 per year, but for the tank heater, they increase by 11% per year. By the end of the 10th year, about how much more will the cumulative costs of the tank heater be than those of the tankless heater?Choose 1 answer:(A) $964(B) $1,504(C) $4,625(D) $5,723
Calculate Cumulative Cost: Determine the cumulative cost of the tankless water heater after 10 years.We know that the cumulative cost of the tankless water heater is $4,090 at the end of the 7th year and it increases by $180 per year. Therefore, we need to calculate the cost for 3 more years (8th, 9th, and 10th year).Cumulative cost after 10 years = $4,090+3×$180
Perform Calculation: Perform the calculation for the tankless water heater.Cumulative cost after 10 years = $4,090 + 3 * $180 = $4,090 + $540 = $4,630
Determine Tank Water Heater Cost: Determine the cumulative cost of the tank water heater after 10 years.The cumulative cost of the tank water heater is also $4,090 at the end of the 7th year and it increases by 11\% per year. We need to calculate the increased cost for the 8th, 9th, and 10th years.For the 8th year: $4,090×1.11For the 9th year: ($4,090×1.11)×1.11For the 10th year: (($4,090×1.11)×1.11)×1.11
Perform Tank Water Heater Calculation: Perform the calculation for the tank water heater.For the 8th year: $4,090×1.11=$4,539.90For the 9th year: $4,539.90×1.11=$5,039.299For the 10th year: $5,039.299×1.11≈$5,593.62
Calculate Cost Difference: Calculate the difference in cumulative costs after 10 years.Difference = Cumulative cost of tank heater after 10 years - Cumulative cost of tankless heater after 10 yearsDifference ≈$5,593.62−$4,630
Final Calculation: Perform the final calculation to find the difference.Difference ≈$5,593.62 - $4,630≈$963.62
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