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5. A local finance company, U R Screwed Inc., quotes a 14 % interest on one-year loans. You want to borrow $10,000 today. Since the

5. A local finance company, U R Screwed Inc., quotes a 14 % interest on one-year loans. You want to borrow $10,000 today. Since the interest you will pay is.14 x $10,000 $1400 and you must repay $11400 in one year, the company requires that you pay $11400/12-$ 950 per month over ihe next 12 months. Is this a 14 % loan? What rate would legally have to be quoted (i.e., what is APR)? What is EAR

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