You are considering purchasing a car from a local car dealer with an MSRP of $30,0000. You're considering opting for deferred payment plan. Pay the dealer $5,000 cash today and a payment of $1,050 at the end of each of the next 30 months. Assuming that 1.25 percent i is the opportunity cost, calculated the present value of all the payments on the dealers deferred payment plan. What is the effective annualized interest rate being charged by the dealer?

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