Energy-Efficient Appliances May Cost __________ Less-Efficient Models; but the Reduced

question 28

Multiple Choice

Energy-efficient appliances may cost __________ less-efficient models; but the reduced operation expense more than offsets the upfront cost over the life of the equipment.

• A) less than
• B) more than
• C) the same as
• D) None of the above

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly distributing the cost of an asset over its useful life.

Semiannual Interest

An interest payment made twice per year on investment vehicles such as bonds, which represents a portion of the annual interest rate.

Annual Yield

The return on an investment over a one-year period, expressed as a percentage of the investment’s initial cost.

Market Rate

The current price or interest rate at which goods, services, or financial instruments are traded in a competitive marketplace.