Your parents make you the following offer: they will give you $500 at the end of every omnt for the next five years if you agree to pay them back $500 at the end of every omnth for the following ten years. Should you accept this offer if your opportunity cost is 12% a year (compounded annually)?

How can I solve this problem? Please show the process in detail.

and please explain why r(hat) is 0.9489% in this case.

Thank you!