A contract calls for a payment of P 1,200 at the beginning of each month for 12 months. At what rate compounded annually would this agreement be equivalent to a cash payment of P 13,614? Select one: a. 13.63% b. 12%

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter17: Capital And Time
Section: Chapter Questions
Problem 17.7P
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A contract calls for a payment of P 1,200 at the beginning of each month
for 12 months. At what rate compounded annually would this agreement
be equivalent to a cash payment of P 13,614?
Select one:
a. 13.63%
b. 12%
O d. 12.45%
Transcribed Image Text:A contract calls for a payment of P 1,200 at the beginning of each month for 12 months. At what rate compounded annually would this agreement be equivalent to a cash payment of P 13,614? Select one: a. 13.63% b. 12% O d. 12.45%
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