Your child's orthodontist offers you two alternative payment plans. The first plan requires a $4,000 immediate up-front payment. The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate is built into the monthly payment plan?

A. 17.81%
B. 14.50%
C. 14.36%
D. 13.50%
E. 11.34%


Answer: C

Business

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