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A renter with $3,071 has a one year lease. The landlord is willing to accept two payment options: (i) $3,071 now; or (ii) $400 paid
A renter with $3,071 has a one year lease. The landlord is willing to accept two payment options: (i) $3,071 now; or (ii) $400 paid at the beginning of each month for twelve months. What monthly interest rate would be required for the two options to be equivalent? [Hint: using financial calculator, or try each answer for multiple choice problems]
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