Your Lease Calls for Payments of $500 at the End

question 97

Multiple Choice

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) −$509.81
• B) −$253.62
• C) +$125.30
• D) +$253.62
• E) +$509.81

---

Definitions:

Testicular Cancer

A form of cancer that develops in the testicles (testes), the male reproductive glands, and may present as a lump or swelling.

Benign Prostatic Hypertrophy

Non-cancerous enlargement of the prostate gland, common in older men, which can interfere with urinary functions.

Vestibular Gland

Glands located near the vaginal opening that secrete fluid to lubricate the vagina, also known as Bartholin's glands.

Fallopian Tube

A pair of tubes along which eggs travel from the ovaries to the uterus; site of fertilization.