A local bank will lend a customer $1000 on a 2-year car loan as follows:
Money to pay for car = $1000
Two years' interest at 7%:
2 x 0.07 x 1000 = 140
24 monthly payments = (1000+140)/24 = $47.50
The first payment must be made in 30 days. What is the nominal annual interest rate the bank is receiving?