Question: A renter with $ 1 , 1 0 4 has a one year lease. The landlord is willing to accept two payment options: 1 .

A renter with $1,104 has a one year lease. The landlord is willing to accept two payment options:
1. $1,104 now; or
2. $100 paid at the beginning of each month for twelve months.
What monthly interest rate would be required for the two options to be equivalent?

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