A local finance company quotes an interest rate of 15.2 percent on one-year loans. So, if you borrow $38,000, the interest for the year will be $5,776. Because you must repay a total of $43,776 in one year, the finance company requires you to pay $43,776/12, or $3,648.00 per month over the next 12 months.

Requirement 1:

Is the interest rate on this loan 15.2 percent?

(Click to select)NoYes

Requirement 2:

What rate would legally have to be quoted? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

APR

%

Requirement 3:

What is the effective annual rate? (Round your answer as directed, but do not use rounded numbers in intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)

Effective annual rate

%