A local finance company quotes a 17% interest rate on one-year loans. So, if you borrow $25,000, the interest for the year will be $4,250. Since you must repay a total of $29,250 in one year, the finance company requires you to pay $29,250/12, or $2,437.50, per month over the next 12 months. Is this a 17% loan? What rate would legally have to be quoted? What is the effective annual rate?