Cheryl is a financial planner who is preparing a debt repayment plan for her client, Alphonso. Alphonso owes $$23,000$ to a private lender at an annual interest rate of $5\mathrm{.}67\%,$ compounded quarterly. He makes loan payments of $$720$ at the beginning of each month. Inflation has been averaging $1\mathrm{.}8\%.$ Cheryl is performing a Time Value of Money $($TVM$)$ calculation to determine how long it will take Alphonso to repay his debt, and needs to adjust the interest rate to reflect the compounding frequency. What is the effective annual interest rate on Alphonso's loan?

Question $2$ options: $3\mathrm{.}93\%5\mathrm{.}79\%7\mathrm{.}68\%$