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?

Show steps in excel Please use the PV Function and RATE Function