geothermal heat pump can save up to 80%of the annual heating and cooling bills of a certain home in the northeastern U.S. In this region, the yearly cost of conventionally heating and cooling a 2,000 square foot house is about $2,800. With a federal tax credit of 30% on the total installation of the system, how much can a homeowner afford to spend for a geothermal heat pump if the interest rate is 8% per year? The expected life of the heat pump is 15 years. The maximum amount a homeowner can afford to spend for a geothermal heat pump is $
geothermal heat pump can save up to 80%of the annual heating and cooling bills of a certain home in the northeastern U.S. In this region, the yearly cost of conventionally heating and cooling a 2,000 square foot house is about $2,800. With a federal tax credit of 30% on the total installation of the system, how much can a homeowner afford to spend for a geothermal heat pump if the interest rate is 8% per year? The expected life of the heat pump is 15 years. The maximum amount a homeowner can afford to spend for a geothermal heat pump is $
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A geothermal heat pump can save up to 80%of the annual heating and cooling bills of a certain home in the northeastern U.S. In this region, the yearly cost of conventionally heating and cooling a 2,000 square foot house is about $2,800. With a federal tax credit of 30% on the total installation of the system, how much can a homeowner afford to spend for a geothermal heat pump if the interest rate is 8% per year? The expected life of the heat pump is 15 years.
The maximum amount a homeowner can afford to spend for a geothermal heat pump is $
Transcribed Image Text:Discrete Compounding;/=8%
Single Payment
Compound
Amount
Factor
To Find F
Present
Worth Factor
Compound
Amount
Factor
To Find F
Uniform Series
Sinking
Fund
Factor
Present
Worth Factor
To Find A
Capital
Recovery
Factor
To Find A
Given P
To Find P
To Find P
Given P
Given F
Given A
Given A
Given F
N
F/P
P/F
F/A
P/A
A/F
A/P
1
1.0800
0.9259
1.0000
0.9259
1.0000
1.0800
2
1.1664
0.8573
2.0800
1.7833
0.4808
0.5608
3
1.2597
0.7938
3.2464
2.5771
0.3080
0.3880
4
1.3605
0.7350
4.5061
3.3121
0.2219
0.3019
5
1.4693
0.6806
5.8666
3.9927
0.1705
0.2505
6
1.5869
0.6302
7.3359
4.6229
0.1363
0.2163
7
1.7138
0.5835
8.9228
5.2064
0.1121
0.1921
8
1.8509
0.5403
10.6366
5.7466
0.0940
0.1740
9
1.9990
0.5002
12.4876
6.2469
0.0801
0.1601
10
2.1589
0.4632
14.4866
6.7101
0.0690
0.1490
11
2.3316
0.4289
16.6455
7.1390
0.0601
0.1401
2222222222
12
2.5182
0.3971
18.9771
7.5361
0.0527
0.1327
13
2.7196
0.3677
21.4953
7.9038
0.0465
0.1265
14
2.9372
0.3405
24.2149
8.2442
0.0413
0.1213
15
3.1722
0.3152
27.1521
8.5595
0.0368
0.1168
16
3.4259
0.2919
30.3243
8.8514
0.0330
0.1130
17
3.7000
0.2703
33.7502
9.1216
0.0296
0.1096
18
3.9960
0.2502
37.4502
9.3719
0.0267
0.1067
19
4.3157
0.2317
41.4463
9.6036
0.0241
0.1041
20
4.6610
0.2145
45.7620
9.8181
0.0219
0.1019
21
5.0338
0.1987
50.4229
10.0168
0.0198
0.0998
5.4365
0.1839
55.4568
10.2007
0.0180
0.0980
23
5.8715
0.1703
60.8933
10.3711
0.0164
0.0964
24
6.3412
0.1577
66.7648
10.5288
0.0150
0.0950
25
6.8485
0.1460
73.1059
10.6748
0.0137
0.0937
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