Randy needs an advance on his next three paychecks, to pay off a $3000 debt he has accumulated from music classes. Randy is paid every 12 days by the school as he is a TA. Randy borrows $3000 from johnny. Johnny agrees to give Randy the loan and Randy agree to repay Johnny $1060 in 12 days, $1060 in 24 days, and $1060 in 36 days, (i.e., on his three paydays). Randy is excited because he thinks that he is only paying 6% interest (3x$60 / $3000) to get out of this mess. Assuming a 360-day year, what is the

effective annual rate (EAR) that Johnny is actually charging Randy for the paycheck advance?