At www.daveramsey.com's Financial Peace University (FPU), Dave recommends Seven Baby Steps. One of these steps is "Pay off debt using the debt snowball." After graduating from FPU, Courtney Lopez-Munoz is trying to calculate the effective interest rate she is paying for a $2,005 simple discount note at 5 1/4% for 16 months. What rate has she been paying?
Note: Do not round intermediate calculations. Round your final answer to the nearest tenth percent.
Effective interest rate __ %
