Exchange is based on the nominal discount rate

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Anurag receives an annuity that pays $1,000 at the end of each month. He wishes to replace it with an annuity that has the same term and has only one payment each year, and that payment should be at the beginning of the year. How much should the payments be if the exchange is based on the nominal discount rate of 3% payable quarterly?

The final answer should be $11,806.30. Please show step by step

Reference no: EM13754397

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