Annuity due. Reginald is about to lease an apartment for 12 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 $13,937. What is the implied monthly discount rate for the rent? If Reg is earning 0.4% on his savings monthly, should he pay by month or make the one-time payment? What is the implied monthly discount rate for the rent? | % (Round to two decimal places.) P4-16 (similar to) Question Help Perpetuities. The Stack has just written and recorded the single greatest rock song ever made. The boys in the band believe that the royalties from this song will pay the band a handsome $220,000 every year (at the end of the year) forever. The record studio is also convinced that the song will be a smash hit and that the royalty estimate is accurate. The record studio wants to pay the band up front and not make any more payments for the song. What should the record company offer the band if it uses a discount rate of 3%, 7.5%, or 9.5%? What should the record company offer the band if they use 3% as the discount rate? $ | (Round to the nearest dollar.)