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:

Positive Replies

Responses that affirm or support the message, question, or request being addressed.

Routine Replies

Responses that are regularly given in similar situations, often standardized.

Routine Replies

Standardized responses given to common or frequently asked questions or situations.

Positive Messages

Communications that convey optimistic, constructive, or beneficial information, often aimed at uplifting the recipient's mood.