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:

Significant Digits

The number of digits in a number that contribute to its accuracy, usually starting from the first non-zero digit.

Double Variable

A type of variable in programming that can hold a double-precision 64-bit IEEE 754 floating point.

Equivalent

Describes entities that are equal in value, function, or meaning even if they are not the same object or instance.

Variable

A symbolic name associated with a value and whose associated value may be changed during the course of program execution.