Your Child's Orthodontist Offers You Two Alternative Payment Plans

Multiple Choice

Your child's orthodontist offers you two alternative payment plans.The first plan requires a $4,500 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) 7.13%
B) 6.50%
C) 6.25%
D) 5.44%
E) 5.00%