If Timmy takes out a loan for $$ \$ 750 $$ for 15 months, but only receives $$ \$ 725 $$ into his bank account, what's the effective interest rate, $$ r_{e} $$ ? Give your answer as a percentage to the nearest hundredth of a percent. Provide your answer below:

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To determine the effective interest rate $$ r_e $$ that Timmy is paying on his loan, we can use the following steps:

1. **Calculate the Interest Paid:**
   $$
   \text{Interest} = \text{Amount to Repay} - \text{Amount Received} = \$750 - \$725 = \$25
   $$

2. **Determine the Principal (Amount Received):**
   $$
   \text{Principal} = \$725
   $$

3. **Compute the Effective Interest Rate:**
   $$
   r_e = \left( \frac{\text{Interest}}{\text{Principal}} \right) \times 100 = \left( \frac{25}{725} \right) \times 100 \approx 3.4483\%
   $$

4. **Round to the Nearest Hundredth of a Percent:**
   $$
   r_e \approx 3.45\%
   $$

**Answer:**  
3.45%
The effective interest rate is 3.45%.

If Timmy takes out a loan for for 15 months, but only receives into his bank account, what’s the effective interest
rate, ? Give your answer as a percentage to the nearest hundredth of a percent.
Provide your answer below:

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If Timmy takes out a loan for for 15 months, but only receives into his bank account, what’s the effective interest rate, ? Give your answer as a percentage to the nearest hundredth of a percent. Provide your answer below: