Dave borrowed $440 and paid $44 in interest when he repaid the principal after one year. The lender also charged him a $4 service fee on a discount basis. What was the effective cost of his loan?

What is the effective cost of the loan?

Dave borrowed $440 and paid $44 in interest when he repaid the principal after one year. The lender also charged him a $4 service fee on a discount basis. What was the effective cost of his loan? (Round your answer to 2 decimal places. Omit the "\%" sign in your response.) Effective cost %