Saved A local finance company quotes an interest rate of 16.6 percent on one-year loans. So, if you borrow $31,000, the interest for the year will be $5,146. Because you must repay a total of $36,146 in one year, the finance company requires you to pay $36,146/12, or $3,012.17 per month over the next 12 months. a. What rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. 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.) a. APR % % b. EAR