Question

Mr. Tank has an old gas water heater that cost him $685/year to operate. He purchased a new one for $1875 that will save him 33.87% annually and energy cost to run in how many years will the new water heater pay for itself? Round to the nearest whole year

Answer 1

Answer:8 years

Explanation:

Given

Old water heater cost
`\$ 685` per year

New Heater cost
`\$ 1875` and save 33.87%

So New heater cost Annually
`=685* (1-.3387)`

New heater cost
`=\$ 452.99`

Saving per year
`=\$ 232`

So it will pay for itself after
`=(1875)/(232)=8.018\approx 8\ years`