You borrow $185,000; the annual loan payments are $28,175.54 for 30 years. What interest rate are you being charged? Round your answer to the nearest whole number. % Effectiveannualrate(EFF%)=[1 Here INOM is the nominal rate expressed as a decimal and M is the number of compounding periods per year. In our example, the nominal rate is 10%. But with semiannual compounding, INOM=10%=0.10 and M=2. This results in EFF%=10.25% : Effective annual rate (EFF%)=[1 We can also use the EFFECT function in Excel to solve for the effective rate