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Problem $5-55$ Effective Interest Rate $($LO$4)$

You boniow $$1000$ from the bank and agree to repay the loan over the reat year in $12$ equal monthly paymests of $$90.$ However, the bank abo charges you a loan initiation fee of $$25,$ which is taken out of the intial proceeds of the loan. What is the effective annual Inferest rate on the loan, taking account of the inpact of the intition fee?

Note: De net reund Intermatilate calculations. Enter your answer as a percest rounded to $2$ deeimel placec. Use a financial celevilator or Excel.

Estective mod helesticle $5$