The store where you bought new home furnishings offers you two alternative payment plans. The first plan requires a $3,500 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?

Select the correct answer.

a. 23.50%

b. 24.50%

c. 23.75%

d. 24.25%

e. 24.00%