A Homeowner in Queensland Has the Opportunity to Install a Solar

question 14

Multiple Choice

A homeowner in Queensland has the opportunity to install a solar water heater in her home for a cost of $3 000. 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? (The interest rate is 8.5% per year.)

• A)$255
• B)$225
• C)$267
• D)$287

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Definitions:

Textile Industry

A sector of the economy concerned with the production of yarn, cloth, and the subsequent design or manufacture of clothing and their distribution.

Blemishes

Imperfections or marks on a surface or object that affect its appearance or quality.

Random Variable

A variable that varies based on the results of a chance event.

Average Value

The sum of all the values in a set divided by the number of values in the set.