A local finance company quotes a 18 percent interest rate on one-year loans. So, if you borrow $16,000, the interest for the year will be $2,880. Because you must repay a total of $18,880 in one year, the finance company requires you to pay $18,880 divided by 12, or $1,573.33, per month over the next 12 months. Is this a 18 percent loan? (Do not round intermediate calculations. Round the final answer to 2 decimal places.)

What rate would legally have to be quoted?

Annual percentage rate %

What is the EAR?

Effective annual rate