Multiple Choice
David has the option to pay for auto insurance on either a lump sum basis of $2,000 per year or $180 per month. Determine the effective rate of interest (based on monthly compounding) if David chooses the monthly payment option.
A) 11.52%
B) 12.45%
C) 13.52%
D) 14.52%
E) 15.45%
Correct Answer:
Verified
Correct Answer:
Verified
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