You are considering buying a salt water chlorinator for your swimming pool. The equipment costs $1300, and you estimate that you will save $250 per year with the saltwater system. Will the chlorinator pay for itself in 6 years (i.e. will the present value of the cost of the chemicals equal or exceed the cost of the chlorinator)? Assume an annual interest rate of 7%, compounded continuously. Answer "yes" or "no".

Question

Quizplus · Accepted Answer

The Answer of You are considering buying a salt water chlorinator for your swimming pool. The equipment costs $1300, and you estimate that you will save $250 per year with the saltwater system. Will the chlorinator pay for itself in 6 years (i.e. will the present value of the cost of the chemicals equal or exceed the cost of the chlorinator)? Assume an annual interest rate of 7%, compounded continuously. Answer "yes" or "no".

You Are Considering Buying a Salt Water Chlorinator for Your