a local finance company quotes a 15 percent interest rate on one-year loans. So, if you borrow $20,000, the interest for the year will be $3,000. Because you must repay a total of $23,000 in one year, the finance company requires you to pay $23,000/12 or $1,916.67 per month over the next 12 months. Is this a 15 percent loan? What rate would legally have to be quoted? What is the effective annual rate?