When repaying a loan using the four plans (assuming no taxes and no inflation), what can be said about the borrower’s preferred payment plan?

a. Since Plan 3 is most commonly used, it is the preferred method.

b. Plan 2 is preferred if the borrower’s TVOM < lender’s interest rate; Plan 4 is preferred otherwise.

c. Plan 4 is preferred if the borrower’s TVOM < lender’s interest rate; Plan 2 is preferred otherwise.

d. Plan 1 and 3 are equally advantageous to the borrower.