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 $1,900.00, per month over the next 12 months. required: (a) what rate would legally have to be quoted?

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

(b)	What is the effective annual rate?