Question

Apartment A rents for $600 per month and includes heat and electric. Apartment B rents for $400 per month but heat and electric are not included. Electric averages $40 per month. Heat costs for last year totaled $800. Which apartment is cheaper?

Answer 1

Appartment B is cheaper. Explanation: we need to compare these two values. A = 600 and B = 400 + cost of heat per month + cost of electricity per month. The cost of heat per year is 800, which gives us a monthly cost of 800/12 = ~$67. So the rent cost for appartment B is 400 + 40 + 67 or 507, which is less than 600.