Problem
Twelve payments of $10,000 each are to be repaid monthly at the end of each month. The monthly interest rate is 2%.
a. What is the present equivalent (i.e., P0) of these payments?
b. Repeat Part (a) when the payments are made at the beginning of the month. Note that the present equivalent will be at the same time as the first monthly payment.
c. Explain why the present equivalent amountsin Parts (a) and (b) are different.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.