Park company is building a new office building, and management is trying to decide how rent payments for the office space should be structured. The alternatives are: Annual payments of P15,000 at the end of each year. Monthly payments of P1,200 at the end of each month. Assuming an interest rate of 12% compounded monthly, which payment schedule should Park use? Show your own step by step solution :)

Park company is building a new office building, and management is trying to decide how rent payments for the office space should be structured. The alternatives are: Annual payments of P15,000 at the end of each year. Monthly payments of P1,200 at the end of each month. Assuming an interest rate of 12% compounded monthly, which payment schedule should Park use? Show your own step by step solution :)

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter19: Lease And Intermediate-term Financing

Section: Chapter Questions

Problem 14P

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