Annuity due.

Reginald is about to lease an apartment for 30 months. The landlord wants him to make the lease payments at the start of the month. The monthly payments are $1,200 per month. The landlord says he will allow Reg to prepay the rent for the entire lease with a discount. The one-time payment due at the beginning of the lease is $31,709. What is the implied monthly discount rate for the rent? If Reg is earning 1.4% on his savings monthly, should he pay by month or make the one-time payment?

When I use the rate function on excel and type in =RATE(30,1200,31709,0,1) It gives me 1% but that is not the correct answer.