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A finance company offers a 3 % plan. The cost of a one - year loan is 3 % , and this cost is

A finance company offers a

" 3 %

plan". The cost of a one

-

year loan is

3 %,

and this cost is added to the loan.

This total is then divided by

12

to get the monthly payments.

Calculate the effective interest rate being charged for a loan of $

9, 000 .

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