The "No Credit Refused" used car dealer offers the following automobile finance opportunity. Monthly payments on the loan are 4% of the original loan amount for 36 months. That is, a loan of $10,000 would have a monthly payment of 4% of $10,000 or $400 every month until paid off. In addition loans require the up-front payment of a $1,000 loan processing fee that is not included in the loan amount.
For an original loan of $25,000, what is the NAR with monthly compounding? Show excel formulas/calculations.