You are considering buying a $ 50,000 car. The dealer has offered you a 13.6 percent loan with 30 equal monthly payments. On questioning him, you find that the interest charge of $ 17,000 (or 0.136 × $ 50,000 × 2.5 years) is added to the $ 50,000 for a total amount of $ 67,000. The payments are $ 2,233.33 a month ($ 67,000 ÷ 30). What is the approximate effective annual interest rate?
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