Question: PLEASE ANSWER SOMETHING DIFFERENT AND DETAILED (including math steps) : A local bank makes auto loans. It charges 4% per year in the following manner:

PLEASE ANSWER SOMETHING DIFFERENT AND DETAILED (including math steps) :

A local bank makes auto loans. It charges 4% per year in the following manner: if $3600 is borrowed to be repaid over a 3 year period, the bank interest deducts the $432 of interest from the $3600 loan and gives the customer $3168 in cash. The customer must repay the loan by paying 1/36 of $3600, or $100 , at the end of each month for 36 months. What nominal annual interest rate is the bank actually charging for this loan?

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