Hunter is in a bind. He has mounting legal fees and needs a loan from his uncle Jim. Hunter needs $3,000,000 and Jim has agreed to lend him the $3,000,000 if he makes 18 monthly payments to Jim in the amount of $200,000. Neither Hunter nor Jim is a financial expert but have agreed that the rate of interest on the loan is 20% since the total of the payments ($3,600,000) is 120% of the initial loan amount.

Calculate the Effective Annual Rate (EAR) for this loan.