Question

A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $3,979. After installation 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

Answer 1

$198.95

Step-by-step explanation:

Calculation for How much must the homeowner save on water heating costs every year if this is to be a sound investment

Using this formula

Saving =Cost *Interest rate

Let plug in the formula

Savings=3,979*5%

Savings=$198.95

Therefore How much must the homeowner save on water heating costs every year if this is to be a sound investment is $198.95