7. LO1 A life insurance company quoted an annual premium of $387.50 (payable at the beginning of the year) for a $250,000 term insurance policy on a 35-year-old male nonsmoker. Alternatively, the insured can pay $33.71 at the beginning of each month by preauthorized electronic debit. Which payment plan would an applicant choose solely on the basis of money being worth 7.5% compounded monthly