The smarter way
to do assignments.

Please note that this is just a preview of a school assignment posted on our website by one of our clients. If you need assistance with this question too, please click on the Order button at the bottom of the page to get started.

Anita Tahani, who owns a travel agency, bought an old house to use as her business office. She found that the ceiling was poorly insulated and that the heat loss could be cut significantly if 6 inches of foam insulation were installed. She estimated that with the insulation, she could cut the heating bill by \$40 per month and the air-conditioning cost by \$25 per month. Assuming that the summer season is three months (June, July, and August) of the year and that the winter season is another three months (December, January, and February) of the year, how much can Anita spend on insulation if she expects to keep the property for five years? Assume that neither heating nor air-conditioning would be required during the fall and spring seasons. If she decides to install the insulation, it will be done at the beginning of May. Anitas interest rate is 9% compounded monthly.
: Reduction in heating cost= \$40 per month As summer lasts for 3 months, she can save the air-conditioning costs worth = 25*3= \$75 As winter lasts for 3 months, she can save the heating cost worth = \$40*3= \$ 120 Thus, with installation of the foam she can save = \$120+75=\$195 per year Assuming that the foam installation does not not damaged and can last for 5 years, the saving she can do during these 5…

ars= 195*5 = \$975 Thus, she can plan to invest a maximum of \$975 to benefit from the installation of foam. If she finances this amount by a loan and will pay it off at the end of 5 years, the amount that has to be repaid = 975 ( 1+0.09/12)^(12 *5) = 975*1.5656 = \$ 1526.53

## GET HELP WITH THIS ASSIGNMENT TODAY

Clicking on this button will take you to our custom assignment page. Here you can fill out all the additional details for this particular paper (grading rubric, academic style, number of sources etc), after which your paper will get assigned to a course-specific writer. If you have any issues/concerns, please don’t hesitate to contact our live support team or email us right away.