A Homeowner in a Sunny Climate Has the Opportunity to Install

question 12

Multiple Choice

A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2900. 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 5% per year.)

• A) $145
• B) $160
• C) $175
• D) $190

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Definitions:

Mexicans

Refers to the people of Mexico, a country in North America with a rich cultural heritage that includes influences from ancient civilizations such as the Maya and the Aztec.

Whigs

A political party active in the 19th century in the United States, which was opposed to the Democratic Party and supported modernization and economic protectionism.

Democrats

Members of the Democratic Party, one of the two major contemporary political parties in the United States, traditionally supporting progressive and liberal policies.

Texas

A state located in the south-central part of the United States, known for its size, cultural history, and economic significance, as well as being the site of significant historical events.