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You can insulate your home for $7,500. You figure you can save 15% per year on your heating bill if you insulate. Your home was bought 10 years ago for $45,500. You figure real estate prices have gone up 16% each year. You plan to live in the house another 10 years. Your home has five bedrooms, 2,500 square feet and requires 5,500 BTU's per hour to heat. You heat with oil and use 175 barrels of oil per year. Oil currently costs $100 per barrel. Money is worth 5% to you. Should you insulate your home. Why? Or why not?

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Solution Summary

Solution provides calculations to check whether home should be insulated or not.

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Annual amount spent on heating oil=175*$100=$17500

Saving on heating oil bills because of ...

Solution provided by:
Lokesh Jain, MSc
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
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