Question

A geothermal heat pump can save up to 85 ​% 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 comma 600 . 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 7 ​% per​ year? The expected life of the heat pump is 14 years

Answer 1