First part up until What is the effective interest rate?

A local lending institution advertises the 51-50 Club." A person may borrow $2000 and repay $51 for the next 50 months, beginning 30 days after receiving the money. Compute the nominal annual interest rate for this loan. What is the effective interest rate? The Rule of 78s is a commonly used method of computing the amount of interest when the balance of a 1-year loan is repaid in advance. Adding the numbers from month 1 to month 12 equals 78. Now the first month's interest is 12/78 of the year's interest. The second month's interest is 11/78 of the year's interest. Thus after 11 months the total interest charged would be 77/78 of the total year's interest