A state is looking to reduce the cost of transportation, which uses 7.10×10^14 BTUs per year. Currently the cost of 10^6BTUs is $20.00. How much will the state save in one uear if they implement regulations requiring all transportation methods to be 20% more efficient

$ 284 million dollars

Explanation:

If the energy usage of all transportation is 7.10 × 10¹⁴ BTU per year, if their efficiency is to increase by 20%, The new energy usage will be (1 + 20/100)7.10 × 10¹⁴ BTU per year = (1.02)7.10 × 10¹⁴ BTU per year = 7.242 × 10¹⁴ BTU per year.

The energy saved is thus the difference 7.242 × 10¹⁴ BTU per year - 7.10 × 10¹⁴ BTU per year = 0.142 × 10¹⁴ BTU per year.

Since 10⁶ BTU costs $ 20.00, then,

0.142 × 10¹⁴ BTU costs 0.142 × 10¹⁴ BTU × $ 20.00/10⁶ BTU = $ 2.84 × 10⁸ per year = $ 284 million dollars

So the state saves $ 284 million dollars in one year

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