Problem 4-47 Calculating EAR A local finance company quotes an interest rate of 18 percent on one-year loans. So, if you borrow $19,000, the interest for the year will be $3,420. Because you must repay a total of $22,420 in one year, the finance company requires you to pay $22,420/12, or $1,868.33, per month over the next 12 months. What rate would legally have to be quoted? (Do not round intermediate calculations. 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. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Effective annual rate