You can pay $100 per month, starting next month, for the next 5
years to have a lawn mowing service. Alternatively, you can
purchase a riding lawn mower and pay $1,400 today and mow your own
lawn for 5 years, starting next month. If you decide to mow your
own lawn, how much do you save in PV terms if your investments earn
3% APR, compounded monthly?
a. $4,084
b.
$4,165
c.
$4,332
d.
$4,249