You are considering buying solar panels for your home, which would lower your electricity bills from $1200 per year to $1000 per year.The panelslast for 10 years. The interest rate is 6%.

The present value of the electricity bill savings over the next 10 years (including this present year) is

a.$200 times 10.

b.$200/1.06.

c.$200/1.0610.

d.$200 (1 + 1/1.06 + 1/1.062+ ... + 1/1.069).

e.$200 x i (1 + 1/1.06 + 1/1.062+ ... + 1/1.069)