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romanna [79]
3 years ago
6

A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2,481. After insta

llation the solar water heater will produce a small amount of hot water every day, forever, and will require no maintenance. How much must the homeowner save on water heating costs every year if this is to be a sound investment
Business
1 answer:
Pavel [41]3 years ago
5 0

Answer:

the question is missing the discount or interest rate that we must use to calculate the answer.

for example, if the interest rate is 5% per year, then this would be a good investment if the homeowner can save $2,481 x 5% = $124.05 per year.

but if the interest rate is 8%, then the homeowner would need to save at least $2,481 x 8% = $198.48 per year.

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