Wow! Ann's loan for 12,000$ with an annual interest rate of 5.65% for one year is 2,124. Multiply the 2,124$ annual interest rate time 4 years and the total annual interest rate would be 8,496$!
Add that to the cost of the loan
12,000 + 8496 = $20,496.00 US dollars is the total cost of the loan if no late payments are made that would accrue an additional monetary fine or penalty that would be added to the totality of the loan anually and increase the entire amount substantially.