You are considering purchasing a car from a local car dealer with an MSRP (manufacturer's suggested retail price) of $30,000. Since you don't have enough cash to pay in full, you're considering opting for the dealer's "deferred payment plan"- you pay the dealer $5,000 cash today and a payment of $1,050 at the end of each of the next 30 months.

Question: Assumming that 1.25% (monthly) is the opportunity cost (a local bank is willing to give you a car loan at the rate of 1.25% per month), 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? *

The only thing you need to submit for the assignment is a single-sheet Excel file where you do all the calculations and highlight the answers (numbers) to the questions in bold.