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Chillingsworth has a neighbor, Shivers, who faces the same options for insulating his house as Chillingsworth.But Shivers has a larger house.Shivers's annual fuel bill for home heating is 1,200 dollars per year.Plan A will reduce his annual fuel bill by 15%, plan B will reduce it by 20%, and plan C will eliminate his need for heating fuel altogether.The plan A insulation job would cost Shivers 1,200 dollars, plan B would cost him 1,900 dollars, and plan C would cost him 13,200 dollars.If the interest rate is 10% and his house and the insulation job last forever, which plan is the best for Shivers?
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