Question: Dave borrowed $ 5 0 0 and paid $ 2 0 in interest when he repaid the principal after one year. The lender also charged

Dave borrowed $500 and paid $20 in interest when he repaid the principal after one year. The lender also charged him a $5 service fee on a discount basis. What was the effective cost of his loan? (Round your answer to 2 decimal place. Omit the "%" sign in your response.)
Effective cost
%

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