A 400-W Computer (Including the Monitor)is Turned on for 8

question 7

Multiple Choice

A 400-W computer (including the monitor) is turned on for 8.0 hours per day.If electricity costs 10¢ per kWh,how much does it cost to run the computer annually for a typical 365-day year?

• A) $120
• B) $1200
• C) $15
• D) $17
• E) $150

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Definitions:

Annuity Due

An annuity for which the cash flows occur at the beginning of the period.

Cash Flow

The net amount of cash and cash-equivalents being transferred into and out of a business, important for assessing liquidity, flexibility, and overall financial performance.

Interest Rate

The charge applied by a lender to a borrower for the employment of assets, indicated as a portion of the principal.