A local bank will lend a customer $1000 on a 2-year car loan as follows:
Money to pay for car....................................$1000
Two years' interest at 7%: 2 × 0.07 × 1000..............140
..............................................................$1140
24 monthly payments = 1140/24 = $47.50
The first payment must be made in 30 days. What is the nominal annual interest rate the bank is receiving?