A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2,100. 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 4​% per​ year.)   A. $99   B. $84 C. $129   D. $114

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A: The rate required to earn the future value using the present value is the compounding rate.

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