Is a 40-Gallon Water Heater Big Enough For My Home?

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I purchased a water heater from my brother-in-law's plumbing supply company.  I thought I needed a 40-gallon heater, but realized afterward that I should've bought a 50-gallon tank. They will not let me return or exchange it.   

I have a 2700-square foot, two-story home. It has 3 full bathrooms. There are four adult family members living in the house, but only my wife and I take showers in the morning.  Do you think a 40-gallon gas water heater will be enough to replace the 20-year old 50 gallon gas water heater we currently have?

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