Jones Auto Sales calculates its 4% nancing as follows. If $3600 is borrowed to be

repaid over a 3-year period, the interest charge is ($3600)(0.04)(3 years) = $432. The $432 of interest

is deducted from the $3600 loan and the customer has $3168 toward the cost of a car. The customer

must repay the loan with 1/36 of $3600, or $100, monthly payments for 36 months. What effective

annual interest rate is being charged?

Please show equations so I can follow along - Thanks