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Real-Life Math

The Newtons have their heart set on buying a new house. You've looked through it top to bottom. Everything looks great except the boiler. The old beast still runs, but guzzles oil.

You tell the Newtons that if they buy the house, they should get a new boiler to save money.

They don't see how they will save money by shelling out $2,886 to buy a new boiler. Answer the questions below to show the couple how, in the long run, it will be better to buy the new boiler.

  1. The old boiler is 70 percent efficient. If 1,000 gallons of oil are used, how many gallons are actually used to keep the house warm?
  2. The new boiler is 90 percent efficient. How much oil will it take to run the new boiler? Remember how much it took to actually keep the house warm with the old boiler.
  3. How much oil do you save per year by using the new boiler instead of the old one?
  4. If oil costs $1 per gallon, how much money will the Newtons save per year using the new boiler?
  5. Based on the money they'll save, how many years will it take to pay for the new $2,886 boiler?

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OCAP believes that financial literacy and understanding the financial aid process are critical aspects of college planning and student success. OCAP staff who work with students, parents, educators and community partners in the areas of personal finance education, state and federal financial aid, and student loan management do not provide financial, investment, legal, and/or tax advice. This website and all information provided is for general educational purposes only, and is not intended to be construed as financial, investment, legal, and/or tax advice.