Honest Joes Used RVs offers the following payment options for a used 2010 Freedom 314SO:

1. $49,900 in cash today;

2. $20,000 down payment right now and then pay $1,500 monthly for the next two years (i.e., 24 payments of $1,500 with the first payment due one month from today).

What effective annual interest rate (EAR) is he charging in the second payment option?

show all work please

step by step

do not use excel please

explain the question with words not just numbers

thanks in advance