McGregor has not budgeted wisely. As a result, he needs a quick loan from Mayweather. McGregor needs $9600 and Mayweather has agreed to lend $9600 if McGregor makes six payments to Mayweather of $1800 per month, to be paid at the end of each month. Because the total amount to be repaid is $10800 ($1800x6), Mayweather says that he thinks that the interest rate is 12.5% ($1200 in interest on a $9600 loan) and, when pressed, Mayweather acknowledges that the effective annual rate is the true measure of the annualized interest and that it might be higher because of compounding. However, neither McGregor nor Mayweather knows how to calculate the effective annual rate of interest for this loan, so they have turned to you for help. [Suggestion: Draw a timeline!] What is the EAR on this loan?