A local finance company quotes a 12 percent interest rate on one-year loans. So, if you borrow $20,000, the interest for the year will be $2,400. Because you must repay a total of $22,400 in one year, the finance company requires you to pay $22,400/12, or $1,866.67, per month over the next 12 months. a. What rate would legally have to be quoted? b. What is the effective annual rate