could someone explain this exercise please

3 A local finance company quotes a 17 percent interest rate on one-year loans. So, if you borrow $40,000, the interest for the year will be $6,800. Because you must repay a total of $46,800 in one year, the finance company requires you to pay $46,800/12, or $3,900.00 per month over the next 12 months. a. What rate would legally have to be quoted? 30.02% 12.00% 26.55% 33.02% 27.02% b. What is the effective annual rate? 34.52%