Question

Shopping for a freezer, Manuit finally settled on one with a purchase price of $850. The annual cost of operating the freezer is $40 per year. When Manuit's average cost of owning the freezer is less than $117, he plans to shop for a new freezer. When can Manuit shop for a new freezer?

Answer 1

Answer:

In 12 months

Step-by-step explanation:

Let a = year when average the average cost of owning a freezer would be less than $117

($850 + $40a) / a < $117

$850 + $40a < $117a

collecting like terms

$850 < $77a

a = 11.04 months