# A rental agreement requires the payment of $1000 at the beginning of each month. a. What single

## Question:

A rental agreement requires the payment of $1000 at the beginning of each month.

a. What single payment at the beginning of the rental year should the landlord accept instead of 12 monthly payments if money is worth 6% compounded monthly?

b. Show that the landlord will be equally well off at the end of the year under either payment arrangement if rental payments are invested at 6% compounded monthly.

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**Related Book For**

## Fundamentals Of Business Mathematics In Canada

**ISBN:** 9781259370151

3rd Edition

**Authors:** F. Ernest Jerome, Jackie Shemko