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Philippa took out a $ 8 6 0 discounted loan for a period of m months and the simple interest rate was 6 % .

Philippa took out a $860 discounted loan for a period of m months and the simple interest rate was 6%. The amount that was actually disbursed into her bank account was $838.50. Calculate the effective interest rate of this loan, to the nearest hundredth of a percent.

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