PLEASE EXPLAIN YOUR ANSWER. THANK YOU.

Ricky Ripovs Pawn Shop charges an interest rate of 12.75 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. What rate should the shop report? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Annual percentage rate % 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.) Effective annual rate %