### Home furnishings offers you two alternative payment plans

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##### Reference no: EM131459893

The store where you bought new home furnishings offers you two alternative payment plans. The first plan requires a \$4,000 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? Please show your steps and calculate using a BAII calculator.

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