A local finance company quotes a 16.2 percent interest rate on one-year loans. So, if you borrow $33,000, the interest for the year will be $5,346. Because you must repay a total of $38,346 in one year, the finance company requires you to pay $38,346/12, or $3,195.50 per month over the next 12 months.

What rate would legally have to b quoted?

APR_____%

What is the effective annual rate?

Effective Annual Rate____%