What is the effective annual rate on the loan

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Reference no: EM132055140

Mary Jones recently obtained an equipment loan from a local bank. The loan is for $33,000 with a nominal interest rate of 15%. However, this is an installment loan, so the bank also charges add-on interest. Mary must make monthly payments on the loan, and the loan is to be repaid in 1 year. What is the effective annual rate on the loan (assuming a 365-day year)? Round your answer to two decimal places. Do not round intermediate calculations.

Reference no: EM132055140

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