# A man moves to lie on an island in Europe. He has a choice of two water companies: Manana Water: No standing charge. Pay £0.06 per m3 of water used. Channel Water: Standing Charge: £30 every 3 months £0.02 per m3 of water used Special offer: 20% off your first bill. he estimates that he uses 700m3 of water every 3 months. which company should he choose?

1 answer

###### Question:

a man moves to lie on an island in Europe. He has a choice of two water companies:

Manana Water: No standing charge. Pay £0.06 per m3 of water used.

Channel Water: Standing Charge: £30 every 3 months

£0.02 per m3 of water used

Special offer: 20% off your first bill.

he estimates that he uses 700m3 of water every 3 months. which company should he choose?

Manana Water: No standing charge. Pay £0.06 per m3 of water used.

Channel Water: Standing Charge: £30 every 3 months

£0.02 per m3 of water used

Special offer: 20% off your first bill.

he estimates that he uses 700m3 of water every 3 months. which company should he choose?

## Answers

Manana would be the best choice in the long run—see all my work below.Regular prices:Manana: [tex]700*.06=42[/tex] £/3mosChannel: [tex](700*.02)+30=44[/tex] £/3mosHowever, with the 20% discount on Channel Water, the first three months would look like:(NOTE: This may be an overly complicated equation, but it's how it works out in my head.)[tex](((\frac{700}{3})2*.02)+30)-((\frac{700*.02+30}{100})20)=30.53[/tex] £ for the first three months.Manana:[tex]4*42=168[/tex] £/yearChannel:[tex](2.75*44)+30.53=151.53[/tex] £ for the first year, and [tex]4*44=176[/tex] £/year afterwards.

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