1) What is the amount of each equal payment if made at the end of each month? Nominal annual rate of 12 is compounded monthly? What about quarterly?
2) What is the effective annual interest rate when monthly payments are used? Nominal interest rate of 12 is compounded monthly. What about quarterly?

A pair of "noise sniffers" is sought by a city utility for identifying noise in their electrical distribution system. One sniffer is for detection from longer distances, and the other is for up-close precision identification of the specific defective component such as a fuse or lightning arrestor. The total cost is $10,000. Budgets are tight and the city desires to pay over 2 years at a nominal annual rate of 12 percent.