Question: Dave borrowed $ 4 2 0 and paid $ 4 2 in interest when he repaid the principal after one year. The lender also charged

Dave borrowed $420 and paid $42 in interest when he repaid the principal after one year. The lender also charged him a $4 service fee on a discount basis. What was the effective cost of his loan? (Round your answer to 2 decimal places. Omit the "%" sign in your response.)
Effective cost %
Dave borrowed $420 and paid $42 in interest when he repaid

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