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Effective Cost of Borrowing Vaani borrowed $ 1 , 0 0 0 and paid $ 4 5 in interest when she repaid the principal after

Effective Cost of Borrowing
Vaani borrowed $1,000 and paid $45 in interest when she repaid the principal after one year. The lender also charged her a $10 service fee on a discount basis (ie upfront fee). What was the effective cost of her loan?

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