A local bank makes auto loans. It charges 4% per year in the following manner: if $3600 is borrowed to be repaid over a 3-year period, the bank interest charge is ($3600)(0.04)(3 years) = $432. The bank deducts the $432 of interest from the $3600 loan and gives the customer $3168 in cash. The customer must repay the loan by paying 1 /36 of $3600, or $100, at the end of each month for 36 months. What nominal annual interest rate is the bank actually charging for this loan?