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A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of . After installation

A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of .
After installation the solar water heater will produce a small amount of hot water every day, forever, and will require no
maintenance. How much must the homeowner save on water heating costs every year if this is to be a sound
investment? (The interest rate is % per year.)
$2,200
6
A. $177
B. $132
C. $162
D. $147

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