Payments on a six-year lease valued at $12,975 are to be made at the beginning of each month during the last 3 years of the lease. If interest is 9% compounded monthly, what is the size of the monthly payments?
Which of the following are correct interpretations and will lead to a correct solution? Be sure to indicate all correct answers.
a.
ordinary annuity of 36 payments with deferral period of 36 months
b.
annuity due of 35 payments with deferral period of 36 months
c.
ordinary annuity of 36 payments with deferral period of 35 months
d.
none of these answer is correct
e.
annuity due of 36 payments with deferral period of 35 months
f.
annuity due of 36 payments with deferral period of 36 months