Answer:
5.1%
Step-by-step explanation:
The proceeds of the loan are ...
13000 -625 = 12375
The amount repaid is 13000. That amount is ...
13000/12375 = 1.05050505...
times the proceeds. So, the effective interest rate is ...
1.05051 -1 = 5.051% ≈ 5.1%
