Megan took out a loan for 1500.00. The bank is going to charge her a fee of2% of her loan amount as well as take out the interest upfront. The bank is offering her 15% APR for six months. Calculate the effective interest rate.

To calculate the effective interest rate, we need to take into account the upfront fee charged by the bank and the interest rate.

First, let's calculate the fee Megan will be charged. Megan took out a loan of $1500.00, and the bank charges a fee of 2% of the loan amount. Therefore, the fee will be 2% of $1500.00, which is (2/100) * $1500.00 = $30.00.

Next, let's calculate the interest charged upfront. The bank is offering Megan an Annual Percentage Rate (APR) of 15% for six months. To calculate the interest charged upfront, we need to divide the APR by the number of months in a year (12) and multiply it by the loan amount. So, the upfront interest will be (15/100) * $1500.00 * (6/12) = $112.50.

Now, let's calculate the total amount deducted from the loan. This includes the fee and the upfront interest. The total deduction is $30.00 + $112.50 = $142.50.

Finally, we can calculate the effective interest rate, which is the total deduction divided by the loan amount. So, the effective interest rate is $142.50 / $1500.00 = 0.095, or 9.5% (rounded to one decimal place).

Therefore, the effective interest rate for Megan's loan is approximately 9.5%.