000 = 125 X PVIFA(I,36) X (1+I) BECAUSE IT IS AN ANNUITY DUE SOLVE F...

3,000 = 125 x PVIFA(i,36) x (1+i) because it is an annuity due Solve for i using your financial calculator: i = 2.5416% EAR = (1 + i

m

)

^m

-1 = (1.025416)

¹²

-1 = 35.15%