Interest Rate Quotes and Adjustments

You are considering a car loan with a stated APR of $6\%$ based on monthly compounding. What is the effective annual rate of this loan?

Your bank is offering you an account that will pay $20\%$ interest in total for a two$-$year deposit. Determine the equivalent discount rate for a period length of

a$.$ six months.

b$.$ one year.

c$.$ one month.