A local finance company quotes an interest rate of 18 percent on one-year loans. So, if you borrow $22,000, the interest for the year will be $3,960. Because you must repay a total of $25,960 in one year, the finance company requires you to pay $25,960/12, or $2,163.33, per month over the next 12 months.

a.	What interest rate would legally have to be quoted? (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? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)