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T-Mobile offers a new cell phone for free with a 2-year $45.00/month contract. Alternatively you can purchase the phone outright for $250.00 and pay $33.00/month

T-Mobile offers a new cell phone for free with a 2-year $45.00/month contract. Alternatively you can purchase the phone outright for $250.00 and pay $33.00/month for a service-only contract. What is T-Mobile charging you in annual interest rate to pay for the phone over the 2-year contract (rounded % to three places after the decimal)?

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