51. Calculating EAR [] LO4] A local finarice company quotes an interest rate of 18.4 percent on onteyear loans. So, if you botrow $20,000, the interest for the year will be $3,680. Because you must repay a total of $23,680 in one yeat, the finance company requites you to pay $23,680/12, or $1.973.33, per month over the next 12 months. Is the interest rate on this loan 18.4 percent? What rate would legally have to be quoted? What is the effective annual rate? 52. Calculating Present Values (2) LO1 A fivescar annuity of 1055,500 semiannual payments will begin 9 years from now