Problem Solved: Energy Savings Due to Pump Efficiency - Wastewater Math

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This question comes from the California Wastewater grade 4 certification exam sample questions that can be found here: http://www.swrcb.ca.gov/water_issues/programs/operator_certification/docs/4ques.pdf

The problem reads:
A 6-year old pump motor is to be replaced. The new motor, just like the old one, would
run 75% of the time. Both existing and replacement motors would operate at 100
OUTPUT HP. The existing motor efficiency is 86% while the replacement motor would be guaranteed at 94% efficiency. Electricity currently averages $0.0780 per KWH. Calculate the energy cost savings per year (to the nearest dollar, assume 365 days/yr) if the existing pump is replaced with the new pump (neglect any consideration of impact upon demand charges or interest on capital)

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