bjb in Tx from Ne said: (quoted from post at 14:18:26 11/01/09)
One recent example I used algebra recently where most would not think of it was to lock in my electric rates.
Plan 1 was a 9.99 monthly charge plus something like 9.8 cents/kwh
Plan 2 was a 4.99 monthly charge plus around 10.6 cents/kwh
Plan 1 looks "cheaper" due to the lower rate per kwh, however a bit of math showed you would need to be a consumer of something like 1000kwh/ month for plan 1 to be the cheaper alternative.
A little bit of math goes a long way......
Actually, plan 1 is cheaper, but not by much.
The break even point is 625kwh.
Use more than 625kwh and Plan 1 will save you money.
At 1000kwh Plan 1 costs you $107.99 and Plan 2 costs you $110.99
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