YOUR COUSIN JUST CAME HOME FROM A POKER TOURNAMENT IN LAS VEGAS AND...

1. Your cousin just came home from a poker tournament in Las Vegas and is now trying to pay off a gambling debt of $5,000. You have agreed to pay off the debt for him today, and in return he has agreed to pay you $250 per month over the next two years with payments beginning immediately. What is the effective annual interest rate you are charging him? A) 19.75% B) 19.86% C) 21.77% D) 22.26% E) 23.45%