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Question
Your lease calls for payments of $500 at the end of each month for the next 12 months. Now your landlord offers you a new 1-year lease which calls for zero rent for 3 months, then rental payments of $700 at the end of each month for the next 9 months. You keep your money in a bank time deposit that pays a simple annual rate of 5 percent. By what amount would your net worth change if you accept the new lease? (Hint: Your return per month is 5%/12 = 0.4166667%.)
a. u2212$509.81
b. u2212$253.62
c. +$125.30
d. +$253.62
e. +$509.81
Answer
This answer is hidden. It contains 241 characters.
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