You have your eyes on a new automobile costing $25,000. You finance $20,000 at 15%/yr/monthover a 5 year period.The loaner then proceeds to add on a 1.25% loan initiation fee of 250$. There is a prepaid loan closeout fee of 250$, another fee of $100, and one more fee of $480. The monthly payment for the loan is $21,080(A/P 1.25%, 60)= $501.49.

What is the monthly rate of interest you are really paying for the loan?