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Alternative Energy Researcher

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Real-Life Math

You are an alternative energy researcher with a small solar energy company. As a small company, you work closely with the whole team. Sales are very important to the company, as that's what pays the bills. Your company aims to get as many customers as possible switching over to solar energy in their homes and businesses.

The sales representative wants some help from you to be able to show a new customer the savings solar power will bring. He brings you a bill from the customer's current energy company.

You review the bill and you can see the potential customer uses an average of 1,500 kilowatt-hours (kWh) per month. The potential customer is now paying seven cents per kWh.

In addition to solar energy research, your company sells and installs solar panels. After rebates available from your local government, the cost to the consumer is $15,000. But this reduces their energy bill to zero.

How much will the customer save each month? Each year? How many months will it take to pay off the $15,000 investment -- how long would it take for the monthly bills to add up to $15,000?

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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.