Yani has \($12\),000 for investment purposes. His bank has offered the following three choices:

a. A special savings certificate that will pay \($100\) each month for 5 years and a lump sum payment at the end of 5 years of \($13\),000

b. Buy a share of a racehorse for \($12\),000 that will be worth \($20\),000 in 5 years

c. Put the money in a savings account that will have an interest rate of 12 percent per year compounded monthly.

Use a present worth analysis to make a recommendation to Yani.