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Tim Houston purchased a wall unit for $2,400. He made a $800 down payment and financed the balance with an installment loan for 48 months.

Tim Houston purchased a wall unit for $2,400. He made a $800 down payment and financed the balance with an installment loan for 48 months. If Tim's payments are $42.50 per month, use the APR formula to calculate what annual percentage rate he is paying on the loan. (Round your answer to two decimal places.)

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