You want to borrow $20,000 for three years. The interest is 8 percent a year. You and lender agree that the interest on the $20,000 will be $4,800 for three years. So, the lender deducts this amount from the loan and gives you $15,200. You repay the $20,000 in three years, thereby paying $4,800 interest as agreed. What is the effective annual interest rate