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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

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 $8,000.

5.63% per year
4.68% per year
5.49% per year
0.46% per month

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