explanations would be appreciated. cheers!

You turn to a loan shark because you are desperate and need to borrow $35,000 for one year. The interest rate charged by the loan shark is 14 percent. You and the loan shark agree that the interest on the loan will be 14 * $35,000 = $4,900. So the loan shark deducts this interest amount from the loan up front and gives you $30,100. In this case, we say that the discount is $4,900. This question illustrates what is known as discount interest. (A loan shark is a shady lender who charges very high interest rates.) Compute the effective annual rate charged by the loan shark? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)