Question: An engineering student must decide whether to pay for auto insurance on a monthly or an annual basis. If paid annually, the upfront annual cost

An engineering student must decide whether to pay for auto insurance on a monthly or an annual basis. If paid annually, the upfront annual cost is $2750. If paid monthly, the cost is $250 at the start of each month. What is the rate of return for buying the insurance on an annual basis expressed as an annual effective rate? Select one: a. 3.50% O b. None is correct O c. 3.00% O d. 3.25% e. 3.75%

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