Question: C-7 A student must decide whether to pay for auto insurance on a monthly or an annual basis. If paid annually the upfront annual cost

C-7 A 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, $250 is to be paid at the start of each month. What is the RoR for buying the insurance on an annual basis expressed as an annual effective rate?

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