A local finance company quotes an interest rate of 16.8 percent on one-year loans. So, if you borrow $30,000, the interest for the year will be $5,040. Because you must repay a total of $24,960 in one year, the finance company requires you to pay $24,960/12, or $2,920, per month over the next 12 months. Is the interest rate on this loan 16.8. percent? What rate would legally have to be quoted? What is the effective annual rate