Jake's Used Cars just sold you a clunker (you need it to get to class on time). You financed the $36,000 purchase price for 48 months. They said your payment would be $890. What interest rate did they charge you (assume monthly compounding) ? Solve with BAIl Plus Calculator showing keystrokes.

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Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.