Maths-
SAT
Easy

Question

The average annual energy cost for a certain home is $4,334. The homeowner plans  to spend $25,000 to install a geothermal heating system. The homeowner estimates that the average annual energy cost will then be $2,712.  Which of the following inequalities can be solved to find t, the number of years after installation at which  the total amount of energy cost savings will exceed the installation cost?

  1. 25,000 > (4,334 − 2,712) t
  2. 25,000 < (4,334 − 2,712) t
  3. 25,000 − 4,334 > 2,712t
  4. 25 comma 000 greater than fraction numerator 4 comma 332 over denominator 2 comma 712 end fraction t

The correct answer is: 25,000 < (4,334 − 2,712) t


    Estimated cost to install a geothermal heating system is $25,000
    The actual average annual energy cost is $4,331. Estimated average annual energy cost is $2,712.
    The homeowner estimate is lesser than the actual average. That is, the homeowner estimates (4334 -                2712) less than the actual
    For t years, the difference between the actual and estimated average becomes: (4334 – 2712) t.
    The actual cost to install a geothermal heating system is (4334 - 2712) t greater than the estimate                       $25,000 Thus, 25,000 < (4334 - 2712) t

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