Please explain using baby steps. I struggle with math. Thanks!

Problem $7-14$ Calculating Interest Using the Bank Discount Method $[$LO$7-2]$

Your uncle lends you $$3,700$ less $$74($interest at $2$ percent$),$ and you receive $$3,626.$ Use the APR formula to find the true annual

percentage rate. Assume you repay the entire loan in one year.

Note: Enter your answer as a percent rounded to $3$ decimal places.