A local finance company quotes a $14$ percent interest rate on one$-$year loans. So$,$ if you borrow $$20,000,$ the interest for the year will be $$2,800.$ Because you must repay a total of $$22,800$ in one year, the finance company requires you to pay $$22,800/12,$ or $$1,900\mathrm{.}00,$ per month over the next $12$ months

$($a$)$ What rate would legally have to be quoted?

$-27\mathrm{.}40\%$

$-22\mathrm{.}45\%$

$-24\mathrm{.}91\%$

$-12\mathrm{.}00\%$

$-22\mathrm{.}42\%$

$($b$)$ What is the effective annual rate?

$-25\mathrm{.}16\%$

$-12\mathrm{.}68\%$

$-30\mathrm{.}76\%$

$-24\mathrm{.}91\%$

$-27\mathrm{.}96\%$