Your Lease Calls for Payments of R500 at the End

Multiple Choice

Your lease calls for payments of R500 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 R700 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) -R509.81
B) -R253.62
C) +R125.30
D) +R253.62
E) +R509.81