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A local finance company quotes an interest rate of 1 5 . 6 percent on one - year loans. So , if you borrow $

A local finance company quotes an interest rate of 15.6 percent on one-
year loans. So, if you borrow $36,000, the interest for the year will be
$5,616. Because you must repay a total of $41,616 in one year, the finance
company requires you to pay $41,61612, or $3,468.00 per month over the
next 12 months.
a. What rate would legally have to be quoted?
Note: Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g.,32.16.
b. What is the effective annual rate?
Note: Do not round intermediate calculations and enter your
answer as a percent rounded to 2 decimal places, e.g.,32.16.
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