$4\mathrm{.}90$ James Wilson wants $to$ purchase a set $of$ furniture worth

$

$5,000$

$.$

$He$ plans $to$ finance the furniture for three years. The furniture store tells James that the interest rate $is$ only

$1$

$\%$

per month, and his monthly payment $is$ computed $as$ follows.

Installment period

$=$

$36$

months

Interest

$=$

$36$

$($

$0\mathrm{.}01$

$)$

$($

$

$5,000$

$)$

$=$

$

$1,800$

Loan processing fee

$=$

$

$25$

Total amount owed

$=$

$

$5,000$

$+$

$

$1,800$

$+$

$

$25$

$=$

$

$6,825$

Monthly payment

$=$

$

$6,825\frac{?}{?}$

$36$

$=$

$

$189\mathrm{.}58$

per month

What $is$ the annual effective interest rate that James $is$ paying for his loan transaction? What $is$ the nominal interest $(annual$ percentage rate$)$ for the loan?

James bought the furniture and made $24$ monthly payments. Now $he$ wants $to$ pay off the remaining installments $in$ one lump sum $(at$ the end $of24$ months$).$ How much does $he$ owe the furniture store?