the answer is C, but can you explain why and show steps in details with calculation, not just by words

[7 points) The Canadian federal government wants to finance an estimated $9,281.35 in debt for every person in the fiscal year of 2021. The length of repayment is 44.39 months. Several financial companies make offers, each with their own format of rates. Your job is to determine which option will generate the least cost for the government. (A) 1.874% compounded monthly (B) A sum equivalent to 7.1% of my principal at the end of the repayment date (C) annual effective rate of 1.85% (D) 1.84% compounded monthly for the first $4,000/person, 1.9% compounded quarterly after