What is the effective annual interest rate on the loan

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You borrow $25,000 from the bank and agree to repay the loan over the next 3-years in 36 equal monthly instalments of $800. However, the bank also charges you a loan initiation fee of $1,000, which is taken out of the initial proceeds of the loan. What is the effective annual interest rate on the loan, taking account of the impact of the initiation fee?

Reference no: EM131821610

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