An engineer buys a $20,600 car. giving a down payment of $5,000. followed by 48 monthly payments of $375. The initial payment was made at the time of purchase and monthly payments begin at the end of the first month. What is the annual nominal interest of this negotiation?

1. 7.2%
2. 7.4%
3. 5.6%
4. 6.0%
5. None of the above